Annuities
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?
During periods of inflation, annuitants will experience a decrease in purchasing power of their payments
Which of the following is an annuity that is linked to a market-related index
Equity-indexed annuity
Which of these annuities require premium payments that vary from year to year?
Flexible premium deferred annuity
What happens to interest earned if the annuitant dies before the payout start date?
It is taxable
If the annuitant dies before the annuity start date,
The premiums paid plus interest earned will be given to the beneficiary
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?
Accumulation period
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called
Annuity certain
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
Life annuity certain
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?
Premiums paid plus interest earned is returned to the beneficiary
Which annuity payout option allows the policy owner to choose a pre-determined number of benefit payments
Period certain
Which of the following is considered to be the period when the accumulated value in an annuity is paid out?
Annuitization phase
Under a non-qualified annuity, interest is taxed after the
Exclusion ratio has been calculated
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose?
Guaranteed lifetime withdrawal benefit
Fixed annuities provide each of the following EXCEPT
Hedge against inflation
Which of these statements regarding the annuitant is CORRECT
The annuitant's life expectancy determines the annuity payments