Annuities
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?
Income that cannot be outlived by the owner
P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
An immediate annuity
Which type of contract liquidates an estate through recurrent payments?
Annuity
Variable annuities may invest premiums in each of the following
Common Stock, Money Market Securities, Junk Bonds
Which of these statements concerning an Individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
Which of the following are Equity Indexed annuities typically invested in?
S&P 500
A Variable Annuity has which of the following characteristics?
Underlying equity investments
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?
Variable A variable annuity's cash value will depend on the results of its investment funds.
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
A(n) _______ annuity pays benefits based on units rather than stated dollar amounts.
variable