quiz7#8

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 with a guaranteed income for life. What type of annuity is best suited for her situation?

"Single Premium". Immediate Annuities are purchased with a single lump sum payment and will start providing income payments within the first year, but usually starting 30 days from the purchase date.

One becomes eligible for Social Security disability benefits after having been disabled for:

5 months

Which of the following annuities pays benefits based on units rather than specific dollar amounts?

A Variable annuity

N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities?

Flexible Installment Deferred

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

Immediate annuity

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called:

an installment refund annuity

To be eligible for Social Security disability benefits, an employee must be unable to perform:

any occupation

G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving monthly payments from the annuity. When G dies, the insurer:

Does not have to make any further payments. With a Straight Life Annuity, the insurer does not have to make further payments after the annuitant dies.

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

Payments are made to an annuitant for life

What is Old Age and Survivors Health Insurance (OASDHI) also known as?

Social Security

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n):

Straight Life annuity based only on life expectancy,

Which of the following factors affects the amount of monthly disability benefits payable under Social Security?

The amount of the benefits available from other sources

Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT?

Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT?

An individual who purchases a Life annuity is given protection against:

the risk of living longer than expected

All of these are considered to be a benefit under Social Security, EXCEPT for:

unemployment