Chapter exam-annuities

An individual who purchases a life annuity is given protection against

the risk of living longer than expected

Which of the following are equity indexed annuities typically invested in?

S&P 500

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

A contract owner terminates an annuity before the income payment period begins. The owner will then receive

the current contract surrender value

A 45-year-old woman won $100,000 in a scratch off lottery ticket. She purchased an annuity that will pay her $1500 per month beginning at age 60 which of these annuities did this woman purchase?

Deferred fixed annuity

N, age 50, recently bought an annuity that will pay a guaranteed $2000/month at age 70 for life what type of annuity did N purchase

Fixed Deferred

The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own

Flexible installment deferred

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

Immediate annuity

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

What is the basic function of an annuity?

The systematic liquidation of accumulated funds