annuities
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
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
a variable annuity has which of the following characteristics
Underlying equity investments
An immediate annuity consists of a
Single Premium
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
the current contract surrender value
an individual who purchases a life annuity is given protection against
the risk of living longer than expected
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?
variable
what annuity pays benefits based on units rather than stated dollar amounts
variable
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
Does not have to make any further payments
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
The type of annuity that can be purchased with one monetary deposit is called a(n)
Immediate annuity
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
How does an indexed annuity differ from a fixed annuity?
Indexed annuity owners 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 T 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 Certain
which of these is an element of a single premium annuity
Lump-sum payment
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
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
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 lives. Which type of annuity did K purchase?
Single premium immediate joint with survivor annuity
The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)
Straight Life annuity
what is the basic function of an annuity
The systematic liquidation of accumulated funds
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
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 annuity did she purchase
deferred fixed
the payment on Q's annuity are no less than $250 quarterly. which of the following annuities does Q own
flexible installment deferred
K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n)
installment refund annuity
