Annuities Ch. 7
Equity indexed annuities are invested in which of the following
S&P 500
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
Which of the following is NOT included in an annuity contract?
AD&D rider
An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continue to a beneficiary until the amount equal to the contract value has been paid. This type of annuity is called
An installment refund annuity
Which of the following annuities pays benefits based on units rather than specific dollar amounts?
A Variable annuity
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
Which of these is an element of a Single Premium annuity?
Lump-sum payment
S recently received a $50,000 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
The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)
Straight Life annuity
If an annuity is terminated prior to beginning of the income payment period, the contract owner receives
The contract surrender value at that time
How does an indexed annuity differ from a fixed annuity?
indexed annuity owners receive credited interest tied to fluctuations of the linked index
An immediate annuity consists of a
single premium
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
Which type of contract liquidates an estate through recurrent payments?
Annuity
What is considered to be a characteristic of an immediate annuity?
Benefit payments start within one payment period of purchase
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 fo 20 years. What type of annuity is this?
Life Annuity with Period Certain