Annuities

Which type of contract liquidates an estate through recurrent payments?

Annuity

The type of annuity that can be purchased with one monetary deposits is called a(n)

Immediate annuity

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that is T dies before receiving payments for 20 years, the remaining payment will be paid to his son for the balance of the 20 years. What type of annuity is this?

Life Annuity with Period Certain

An individual who purchases a Life annuity is given protection against

The risk of living longer than expected

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

Variable

Which of these statements concerning an Individual Straight Life annuity is accurate?

Payments are made to an annuitant for life.

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her a guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

N, age 50, recently brought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Fixed Deferred

How does an indexed annuity differ from fixed annuity?

Fixed annuity owners receive credited interest tied the fluctuations of the linked index

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices Except a(n)

Immediate annuity