Chapter Exam- Annuities
Fixed Deferred
set payments at a certain age for life
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
What is considered to be a characteristic of an immediate annuity?
Benefit payments start within one payment period of purchase.
What is not included in an annuity contract?
AD&D rider
Which type of contract liquidates an estate through recurrent payments?
Annuity
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?
Deferred
The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible installment deferred
Variable annuities may invest premiums in each of the following, EXCEPT:
Insurer's corporate business account
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