insurance chapter 6

an individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. which of the following types of annuities would best meet this need

deferred

An annuity that guarantees a minimum rate of return is

fixed annuity

which type of annuity settlements stops when the annuitant dies

life annuity

An annuity begins payments to the annuitant one month after it is purchased. what type is it?

single premium immediate annuity

the time period which an annuitant contributes to an annuity is called

the accumulation period

Who bears the investment risk in a fixed annuity?

the insurance company

Annuities may be purchased with all of the following payment methods EXCEPT

deferred

When an annuity is written, whose life expectancy is taken into account?

annuitant

annuities can be used for all of the following reasons except

to create an estate

which of the following statements is true about annuities

they can provide a lifetime income