Annuities- 7 exam

what is considered to be a characteristic of an immediate annuity

Benefit payments start within one payment period of purchase"

P age 50, purchased at an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. What type of annuity did P purchase

Deffered

All of the following statements regarding a Tax Sheltered Annuity (TSA) are true except

Income derived from the TSA is received income tax-free

how does an indexed annuity differ from a fixed annuity

Indexed annuity owners may receive credited interest tied to the fluctuations of the linked index

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

Life annuity with period

Which of these is an element of a single premium annuity

Lump Sum Payment

Which of these statements concering an individual straight life annuity is accurate

Payments are made to an annuitant for life

K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse live. which type of annuity did K purchase

Single Premium Immediate Joint with survivor Annuity

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

The current contract surrender value

A variable annuity has which of the following characteristics

Underlying equity investments

T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company

A. Does not have to make any further payments.

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 Immediate annuities start providing income payments usually starting within 30 days from the purchase date. Deferred annuities start providing income payments after the first year.

A(n) ____ annuity pays benefits based on units rather than stated dollar amounts

Variable