Ch3 quiz

Straight life

All other factor being equal, which of the following types of annuities will provide the highest monthly income?

Single premium immediate annuity

An annuity begins payments to the annuitant one month after it is purchased. What type is

Fixed annuity.

An annuity that guarantees a minimum rate of return is known as a/an

Deferred

An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?

To create an estate.

Annuities can be used for all of the following reasons EXCEPT

Deferred.

Annuities may be purchased with all of the following payment methods EXCEPT

The accumulation period.

The time period during which an annuitant contributes to an annuity is called

SEC, FINRA, and Departments of Insurance.

Variable insurance and variable annuities are regulated by

Living longer than expected

What does an annuity protect the contract owner against?

Annuitant

When an annuity is written, whose life expectancy is taken into consideration?

Only the annuity owner

Which of the following has the right to surrender a deferred annuity contract?

Benefits stop at the annuitant's death.

Which of the following is NOT true regarding an annuity certain?

They can provide a lifetime income.

Which of the following statements is truc about annuities?

Life annuity

Which type of annuity settlements stops when the annuitant dies?

The insurance company

Who bears the investment risk in a fixed annuity?