chapter 7- annuities

Which of the following 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

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 $1,500 per month beginning at age 60. Which of these annuities did this woman purchase?

Deferred Fixed 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.

Variable annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account.

Which of these is an element of a Single Premium annuity?

Lump-sum payment

Which of the following are Equity Indexed annuities typically invested in?

S&P 500

An immediate annuity consists of a:

Single premium