Annuities

The owner must be the party to receive benefits

All of the following are true of an annuity owner EXCEPT

Equity Indexed Annuity

An annuity owner is funding an annuity that will supplement her retirement.

Seek higher returns.

Equity indexed annuities.

Joint life annuity

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

The annuitant must be a natural person.

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

Favorable tax treatment

What is the advantage of having a qualified annuity?

The man's payment will be larger

Twins brother and sister each purchased a retirement annuity. When they retired at the same time, each selected the life income option. Both have similar life styles and are in good health. Which of the following is true with respect to their monthly annuity payments?

The insurance company's general account

When a fixed annuity owner pays his/her insurance company a monthly annuity premium, where is this money placed?

It allows the owner to surrender the annuity without a charge.

Which of the following best describes a bail-out provision?

Individual

Your client's employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain?

The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges.

A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity.

Installments for a fixed period

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

It can be owned by individual employees

Which of the following is NOT true about a group annuity?

Conservative investments like bonds

In reference to fixed annuities, what comprises most of a life insurance company's general account?

The period of time during which accumulated money is converted into income payments

Which of the following best describes what the annuity period is?