Annuities

The annuity purchased with multiple payments, whose benefit is paid more than one year after the purchase is known as which type of annuity?

Flexible Premium Deferred Annuity

Annuities can be used to fund which of the following?

Retirement plans

Equity Indexed Annuities

Seek higher returns

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investment.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

The annuitant must be a natural person.

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

What is the difference between a single premium and a flexible premium payment options in a deferred annuity?

The number of payments that purchase the annuity

Which of the following is NOT fundable by annuities?

Death benefits

If a person purchases a Flexible Premium Deferred Annuity, when is the soonest that income payouts will begin?

After 1 year

Which of the following will NOT be an appropriate use of a deferred annuity?

Creating an estate

A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?

Joint and Survivor

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

Joint life annuity.

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

Which of the following is NOT true about a joint and survivor annuity benefit option?

Payments stop after the first death among the annuitants.