A.D. Banker - Health'Life Insurance - Annuity Chapter 5
Which of the following annuities typically offers no guarantees? A. Variable B. Indexed C. Fixed D. Bonus Interest Rate Annuities
A - The variable annuity holder assumes all investment risk
Beneficiary
The individual or person name in he contract to potentially receive benefits if the owner and/or annuitant die prior to annuitization or if the settlement option selected offers any residual benefit after the nnuitant's death.
The insurer generally assumes the investment risk in all of the following annuities, except: A. Indexed B. Guaranteed C. Variable D. Fixed
C - The insurer's general account assets guarantee fixed dollar annuity contracts, and the insurer bears any investment risk.
Electing a _____ option for an annuity means that the annuitant will receive an income for life or for a temporary period of time. A. Funding B. Pay In C. Distribtion D. Settlement
D - Electing a settlement option for an annuity means that the annuitant will receive an income for life or for a temporary period of time.
All of the follwoing are Payment Options available upon annuitization, except: A. Interest Only B. Life Income Period Certain C. Life Income joint and Survivor D. Life Income with Refund
A - Annuity Payment Option are nearly identical to life insurance Settlement Options, except for Interest Only
Annuities may be funded with either a lump sum or a ______ premium basis. A. Flexible B. Indexed C. Varable D. Life
A - Contributions made during the accumulation period are made with a lump sum or on either a periodic or a flesible basis depending on contract design.
Ralph has selected an annuity benefit or payment option where, upon annuitization, the annuity will pay a benefit for as long as eith Ralph or a co-annuitant are alive. Ralph has elected which of the following benefit or payment options? A. Life Income Joint and Survivor B. Joint Life C. Life Income Period Certain D. Straight Life
A- Under Life Income Joint and Survivor, payments would continue until the death of the second person to die
Sam wants to know at what age he should annuitize in order to receive the highest monthly income benefit payment: A. Age 62 B. Age 55 C. Age 65 D. Age 70
D - The longer Sam waits to annuities his annuity, the higher each monthly income benefit payment will be because of the shorter expected payout period.
Which of the following annuities typically offers no guarantees? A. Bonus Interest Rate Annuities B. Fixed C. Indexed D. Variable
D - The variable annuity holder assumes all investment risk
Life income
Monthly income for the life of the annuitant with no payment to the beneficiary
Beneficiaries
Named and designated by the owner prior to the annuitization or guaranteed payout period. The beneficiary may be named at receipt of the first purchase and may be only be hanged by the owner
Accumulatoin period
The contract owner and the annuitant are the same person and the designated beneficiary is the annuitant's spouse, the IRS code allows the spouse to assume ownership of the annuity upon the death of the annuitant. All rights of ownership ae assumed to include tax deferment.
The annuity benefit or payment option requiring the greatest amount of capital per $1,000 of benefit is: A. Life Income joint and Survivor 50% B. Life Income joint and Survivor 66 2/3% C. Life Income joint and Survivor 100%. D. Life Income joint and Survivor 75%
The income benefit requiring the greatest amount of capital per $1,000 of the benefit is Life Income Joint and Survivor !00%. The higher the percentage of the payment for the survivor (1/2, 2/3), the greatest amount of capital that is needed
If an annuity is purchased in December and monthly benefits begin in January of the following year, what type of annuity is it? A. Variable Retirement Annuity B. Single Premium Immediate Annuity C. Flexile Premium Tax Sheltered Annuity D. Single Premium Fixed Annuity
The question addresses when the actual receipt of benefits from an annuity begins witrhin a year of the issue date, this is referred to as 'immediate'
Which of these annuity distribution options promises the largest possible payment to a single annuitant? A. Life income only B. Installment refund C. Life income with period certain D. Lump sum refund
A - A life income only opotion provides the largest possible payment since the insurer has no risk of paying income to a beneficiary. There is a greater possibility that the insurer will pay income beyond the life of the annuitant if any of the other options are selected
A characteristic of a fixed annuity is that the: A. Separate account has investment options B. Monthly income benefits are fixed and level C. Interest rate credited in the account varies based on the performance of the separate account D. Annuitant cannot be changed
B - A fixed annuity provides for a fixed level benefit payment to the annuitant when the contract is annuitized
Unless an exception applies, a tax penalty is assessed for withdrawals from annuities of tax-deferred earnings prior to age ______. A. 55 B. 59 1/2 C. 65 D. 62
B - A penalty of 10% is leved on withdrawals of tax-deferred earnings in order to discourage the use of annuities as short-term tax shelters
Owner
The individual who controls the contract and is responsible fo making payments into the contract, as well as having all of the contractual rights in the policy, is the owner
The insurer generally assumes the investment risk in all of the following annuities, except: A. Variable B. Guaranteed C. Fixed D. Indexed
A - The insurer's general account assets guarantee fixed-dollar annuity.
Under an annuity with a Joint Life Payment Option, what will the survivor receive upon the death of the first annuitant? A. Nothing B. The undistributed balance C. The same amount they were receiving together D. The remaining period certain
A - The joint life payment option ceases all distribution at the first death of any of the annultants. This would not be the case if a Life Income Joint and Survivor Option were chosen
An Insurer considers all of the following when determining the fixed annuity payments, except: A. The acumulation amount B. Stock market value C. Expenses D. Interst rates
B - The accumulation amount, interest rate, expenes, gender, and age of the annuitant are the important factors when computing any of the available annutization options benefit payments.
The owner of an annuity ay do all of the following except: A. Change the annuity date B. Determne the contract's interest credit C. name and change teh beneficiary D. Select or change the settlement option prior to death
B - The owner's rights begin at the time of purchase. An owner, who may also be the annuitant, may change the annuity date, beneficiary, and payout option
The annuity benefit or payment option requiring the greatest amount of capital per $1,000 of benefits is: A. Life income joint and Survivor 50% B. Life income joint and Survivor 75% C. Life income joint and Survivor 100% D. Life income joint and Survivor 66 2/3%
C - The income benefit requiring the greatest amount of capital per $1,000 of benefits is Life Income joint and survivor 100%. The higher the percentage of payment for the survivore (1/2, 2/3), the greater amount of capital taht is needed.
Upon annuitizing an annuity, all of the following factors help in determining the amount of the income benefit payment, except: A. Settlement option B. Gender C. State of residence D. Age
C - Upon a lifetime annuitization, payment will be made to the annuitant based upon the annuitant's age, gender, settlement option selected, and dollar amount used to fund the income benefit payments.
Life Insurance
Provides a benefit upon death Protects against premature death Issued as a policy Owner, insured, beneficiary Creates an estate Pays a death benefit
The annuity benefit or payment opton requiring the greatest amount of capital per $1,000 of benefit is: A. Life income joint and Suvivor 66 2/3% B. Life income joint and Survivor 50% C Life income joint and Survivor 75% D. Life income joint and survivor 100%
D - The income benefit requiring the gratest amount of capital per $1,000 of benefit is Life Income Joint and Survivor 100%. The higher the percentage of payment for the survivor (1/2, 2/3), the greater amount of capital that is needed.
Annuitant
The individual whose life the contract is based upon. Upon a lifetime annuitization, payments will be made to the annuitant according to the annuitant's age, gender, settlement opton selected, and dollar amount used to fund the income Benefit payments.
The insurer generally assumes the investment risk in all of the following annuities, except: A. Variable B. Guaranteed C. Fixed D. Indexed
A - The insurer's general account assets guarantee fixed-dollar annually contracts, and the insurer any investment risk.
All of the following factors are used to determine the monthly benefit payment of an annuity, except: A. Annuitant's medical history B. Annuity payment option selected C. Accumulated account value D. Age of annuitant
A - The monthly annuity payment is based on several factors, including the accumulated value, interest rate, age and gender of annuitant and the payment option selected. Since there ae no insurability requirements, the annultant's medical history is not a factor.
Annuity
Annuities are used to provide a steady income to an individual upon retirement. Designed to protect against outliving an individual's retirement income by providing lifetime income Primary functions is to liquidate an estate, or pay benefiits until the death of the annutant. Annuities are funded and solid through life insurance companies and require at least a life insurance license to sell. There are no evidence of insurability required to purchase an annuity
An insurer considers all of the following when determinng the fixed annually payments, except: A. The accumulation amount B. Stock market value C. Expenses D. Interest rates
B - The accumulation anount, interest rate, expenses, gender, and age of the annuitant are the important factors when computing any of the available annuitization options benefit payments.
What is the name fo the person named in the annuity contract to potentially received any residual benefits? A. Owner B. Annuitant C. Insured D. Beneficiary
D - The beneficiary is the individual or person named in the contract to potentially receive benefit if the owner and/or annuitant die prior to annuitization or if the settlement option selected offers any residual benefit after the annuitant's death.
The insurer generally assumes the investment risk in all of the following annuities, except; A. Fixed B. Guaranteed C. Indexed D Variale
D - The insurer's general account assets guarantee fixed-dollar annuity contracts, and the insurer bears any investment risk.
The owner of an annuity may do all of the following, except: A. Name and change the eneficiary B. Determine the contract's interest credit C. Change teh annuity date D. Select of change trhe settlement option prior to death
B - The owner's rights begin at the time of purchase. An owner, who may also be the annuitant, may change the annuity date, beneficiary, and payout option.
All of the following annuities can be sold without a securities registration/license, except: A. Variable B. Indexed C. Guaranteed D. Fixed
Only a life insurance license is required in order to sell fixed anuities in most states.
Life Income Joint and Survivor
Payable on more than one life; upon death of the annuitant, payment continue to survior
K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separat account(s) is 5%, the effect on this months's income benefit check will be such that it: A. Becomes Higher B. Becomes Lower C. Remains the Same D. All Depends on the Separate Account(s) Selected
A - If the actual return is lower than the AIR, the monthly annuity payment will be reduced. If the actual return is equal to the AIR, the monthly annuity payment will remain the same as the previous month. If the actual return is greater than the AIR, the monthly annuity payment will increase from the previous month
All of the following annuities can be sold withour a securities registration/license except: A. Variable B. Indexed C. Guaranteed C. Fixed
A - Only a life insurance license is required in order ro sell fixed annuities in most states.
A(n) ________ has all of the contractual rightrs in an annuity contract. A. Owner B. Annuitant C. Beneficiary D. Insurer
A - The contract owner has all of the rights within the contract.
What is an annuitant, in regard to an annuity policy? A. The party whose life the policy's benefits are based on B. The person who has all of the rights in the contract C. The isuer of the policy D. The party who receives any residual policy benefits
A - An annuitant is the individual whose life the contract is basrd upon.
All of the following are Payment Options available upon annuitization except: A. Interest Only B. Life Income Period Centain C. Life income joint and survivor D. Life income with refund
A - Annuity Payment Option are nearly identical to life insurance Settlement Options, except for Interest Only
Owner's rights
Begin at the time of purchase. A tax-free owner, who may also be the annuitant, may change the annuity date, beneficiary and payout option
All of the following are characteristics of a variable annuity except: A. Designed to protect against inflation B. Premiums made into teh annuity purchase accumulation units C. The separate account provides for a guaranteed minimum return D. Each month the payment will increase, decrease or remain the same as teh previouse months's payment based on the actual return as compared to the assumed interest rate (AIR)
C - A variable annuity does not provide for any minimum guarantees
Which product, offered by insurers is specifically designed to allow an individual's savings to be distributd to him/her periodically over his/her entire life, regardless of how long he/she lives? A. Participating Whole Life B. Variable Life Insurance C. Annuities D. Univerisal Life Insurance
C - Annuities are the only products in this list of choices that provide lifetime income to the policyowner as started in teh question.
A lump sum of money is placed into an account fom which the annuitant will draw periodic benefits begining more than a year from the date of purchase. This describes a: A. Single Premium immediate Annuity B. Flexible Premium Deferred Annuity C. Single Premium Deferred Annuity D. Flexible Premium immediate Annuity
C - REgardless of how it is funded, by definition a deferred annuity does not begin its income stream for at least 13 months. Typically, the deferral period is many years, not just one.
Mr. & Mrs. Smith receive monthly benefits from their annuity, and upon Mr. Smith's death, Mrs. Smith receives a reduced amount. What annuity payment option did they choose? A. Life Income B. Joint Life C. Life Income joint and survivor D. Life with cash refund
C - The Payment Option that would continue to pay a reduced amount to Mrs. Smith is joing and survivor.
Jill wants to know how much to put into her annuity in order to receive the greatest benefit payment amount. Which of the following will provide her with the largest monthly income regardless of the settlement option selected? A. $500,000 B. $250,000 C. $750,000 D. $1,000.000
D - All other factors being equal, the larger the premium deposit, the larger the benefit payment.
Joint Life
Payable on more than one life and paymentw will stop upon the first to die
Which of the following statement is True regarding Fixed Annuities? A. Upon annuitization, the annuity payments are level B. A securities registration (license) is required in order to sell them C. Premiums are allocated to separate accounts D. The contract owner bears the investment risk
A - Premiums are allocated to the insurer's general account. The insurer has the investment risk, and fixed annuities pay out a fixed level income benefit payment.
All of the following terms are the same regardless if the policy is life insurance or an annuity, except: A. Annuitawnt B. Beneficiary C. Owner D. Insurer
A - The annuitant in an annuity is the equivalent of the insured in a life insurance policy
All of the following terms are the same regardless if the policy is life insurance or an annuity, except: A. Annuitant B. Beneficiary C. Owner D. Insurer
A - The annuitant in an annuity is the equivalent of the insured in a live insurance policy.
Which annuity product offers interest rates linked to the positive performance of the S & P 500? A. Variable Universal Life B. Indexed Universal Life C. Variable Annuity D. Equity-indexed annuity.
D - An equity-indexed annuity offers interest rate that are linked to the positive performance of a stock market-related (equity) index, typically Standard & Poor's 500 index.
An annuity that is purchased with contributions made as often and in whatever amounts the owner wishes, subjects only to the insurer's minimums and maximums, is called: A. A fixed premium annuity B. A single premium annuity C. A periodic premium annuity D. A flexible premium annuity
D - This defines a flexible premium annuity
An annuity that is purchased wirh contributions made as often and in whatever amounts the owner wishes, subject only to the insurer's minimums and maximums, is called: A. A fixed premium annuity B. A single premium annuity C. A periodic premium annuity D. A flexible premium annuity
D - This defines a flexible premium annuity.
Which of the following is not a fixed type of an annuity? A. Guaranteed B. Variable C. Indexed D. Fixed
B - A variable annuity is not a fixed tpe of annuity since it is supported by the separate account and not the general account
Which product should you recommend for a client who wishes to keep pace with inflation while protecting capital? A. Varaiable annuity B. Equity indexed annuity C. Fixed annuity D. Variable Life
B - An indexed (or equity-indexed) annuity can be thought of as a combination of fixed and variable annuities. The guaranteed minimum interest rate protects against the loss of capital, and the potential gain allows for the offset of inflation. The difference between a variable annuity and an equity-indexed annuity is the guaranteed minimum rate-a variable annuity does not offer this.
Deferred annuities are normally purchased to defer _______. A. Withdrawals of any earnings B. Taxes on any policy earnings C. Earnings on any deposits D. Withdrawals of any principal
B - Deferred annuities are normally purchased to defer taxes on any policy earnings. They are ideal for accumulating a retiredment fund.
Jasmine has deposited $100,000 into a single premium immediate annuity. If Jasmine were to die before receiving $100,000 in payments, the balance of the $100,000 would be paid to her sister, Jasmine has selected the: A. Life Income joint and survivor Option B. Life income with Refund Option C. Life income Period Certain Option D. Joint Life Option
B - If Jasmine dies prior to receiving an amount equal to the total of all payments made into the annuity and the balance of that amount is refunded to a beneficiary either in a lump sum or in installments, she has chosen Life Income with Refund.
Life income wih refund
Lifetime income to the annuitant, balance refunded to beneficiary upon death of the annuitant
K owns a variable with an assumed interest rate of 4%. If the actual performance of the separate accont(s) is 5%, the effect to this month's income benefit chect will be such that is: A. Becomes Lower B. Become Higher C. All Depends on the Separate Account(s) Selected D. REmains the Same
B - if the actual return is lower than the AIR, the monthly annuity payment will be reduced. If the actual return is equal to AIR, the monthly annuity payment will remain the same as the previous month. If the actual return is greater than the AIR, the monthly annuity payment will increase from the previous month.
Which product, offered by insurers is specifdically desifned to allow an individual's savings to be distributed to him/her periodically over his/her entire life, regardless of how long he/she lives? A. Participating Whole Life B. Variable Life Insurance C. Annuities D. Universal Life Insurance
C - Annuities are the only products in this list of choices that provide lifetime income to the policyowner as stated in the question.
All of the following are true regarding annuities, except: A. They are used primarily to provide a steady stream of income. B. They are designed to protect against outliving one's income C. They are similar to life insurance D. They can liquidate an estate
C - Annuities are used primarily to provide a steady stream of income to an individual, typically upon retirement. They are designed to protect against outliving one's retirement income by providing lifetime income. And they can liquidate an estate over the lifetime of an annuitant. Although both annuities and life insurance are mortaliry based peoducts, they have opposire purposes; annuities are designed to distribute an estate, while life insurance is designed to create an estate.
When comparing life insurance to an annuity, an annuity: A. Guarantees a death benefit upon the insured's death B. Create a lump sum benefit to be paid upon the annulant's death C. Protects against the annuitant living too long D. Provides tax free payments for the lifetime of a beneficiary
C - Annuities protect against an annuitant living too long by providing a stream of income the annuiant cannot outlive. Annuities do not provide tax-free payments or guarantee a death benefit. Annuities lquidate an estate and life insurance creates an estate
Deferred annuities are normally purchase to defer _____ A. Earnings on any deposits B. Withdrawals of any principal C. TAxes on any policy earnings D. Withdrawals of any earnings.
C - Deferred annuities are normally purchased to defer taxes on any policy earnings. They are ideal for accumulating a retirement fund.
Deferred annuities are normally purchased to defer____ A. Earnings on any deposits B. Withdrawals of any principal C. Taxes on any policy earnings D. Withdrawals of any earnings
C - Deferred annuities are normally purchased to defer taxes on any policy earnings. They are ideal for accumulating a retirement fund.
W and Z are annuitants of an annuity. W dies and Z receives 1/2 of the amount coming into their household when both were alive. They must have elected which of the following settlement options? A. Life with Period Certain B. Life with installment refund C. Joint an 1/2 Survivor D. Joint Life
C - In a joint and survivor annuity, benefits are payable to 2 annuitants while both are living. Upon the death of the first annuitant, survivor benefits continue, either paying the full amount or reduced to 2/3 or 1/2 for survivor's income until the survivor dies.
W and Z are annuitants of an annuity. W dies and Z receives 1/2 of their household when both were alive. They must have elected which of the following settlement options? A. Life with Period Cetain B. Life with Installment Refund C. Joint and 1/2 Survivor D. Joint Life
C - In a joint and survivor annuity, benefits are payable to 2 annuitants while both are living. Upon the death of the first annuitant, survivor benefits continue, either paying the full amount or reduced to 2/3 or 1/2 for the survivor's income until the survivor dies.
An individual owns a variable annuity. Upon annuitization, the number of Annuity Units on which the benefit amount is based will ______ from month to month A. Increase B. Vary C. Remains the same D. Decrease
C - It is important that the individual understand thawt upon annuitization, the number of units used to calculate the benefit amount weill always be the same. It will be the unit value that fluctuates according to the performance of the separate account(s)
Mr. & Mrs. Smith received monthly benefits from their annuity, and upon Mr. Smith's death, Mrs. Smth receives a reduced amount. What annuity payment option did they choose? A. Life Income B. Joint Life C. Life Income Joint and Survivor D. Life with Cash RefundC
C - The Payment Option that would continue to pay a reduced amount to Mrs. Smith is joint and Survivor
Which annuity product offers interest rates linked to the posirive performance of teh S&P 500? A. Variable Universal Life B. Indexed Universal Life C. Variable annuity D. Equity-indexed annuity
D - An equity-indexed annuity offers interest rates that are linked to the positive performance of a stock market related (equity) index, typically Standard & Poors 500 index.
All of the following statements are correct regarding an annuity, Except: A. The accumulation value grows tax-deferred B. Annuity premiums can bbe made in single or periodic payments C. An annuity can be characterized by immediate or deferred income D. An immediate annuity must start providing income within 3 years of the first premium payment
D - An immediate annuity must start providing income within one year of the first pemium payment
A contract that is designed to accumulate value over time with the intent to provide a stream of income over the lifetime of an individual is called ____________ A. Variable life Insurance B. Whole Life Insurance C. Term Insurance D. An Annuity
D - Annuities are designed to provide a stream of income for the lifetime of an individual. Life insurance policies such as whole life, and term insurance are designed to provide death benefits
Which of the following is True regarding indexed Annuities? A. They have a level number of annuity unit with a fluctuating unit value B. The premiums paid are usually invested in separate account(s) C. Values and benefits are determined by the performance of a separate account D. Values and benefits may increase, but not decrease
D - Because of the way Indexed Annuities, they offer a portion of the potential upside of the index selected to determine the policy's interest credits, but in no case will the policy values or benefits go down if the index chosen falls in value.
Z Chooses a life income with 10 year period certain settlement option for rhe annuity Z owns. Z dies after 15 years of receiving income benefit payments. What does Z's beneficiary receive? A. Lifetime income B. 5-yrears' worth of payments C. 10 years worth of payments D. Nothing
D - Since Z outlived the period certain, the beneficiary receives nothing
________are allowed as a way to access annuity values without having ro elect a settlement option or surrender the contract A. Contract waivers B. Loans C. Prmium deferrals D. Systematc withdrawals
D - Systematic withdrawals are allowed as a way to access annuity values without having to elect a settlement option or surrender the contract
All of the following terms are the same regardless if the policy is life insurance or an annuity, except: A. Owner B. Beneficiary C. Insurer D. Annuitant
D - The annuitant in an annuity is the equivalent of the insured in a life insurance policy.
When does the annuitizaton period begin? A. At the specified age stated in the policy, usually age 100. B. When the annuitant reaches age 59 1/2 C When the annuitant reaches age 70 1/2 D. When the policyowner elects to onvert the annuity into an income benefit payment
D - The annuitization period begins once the policyowner elects to convert the deferred annuity into an income benefit payment.
Unnder an annuity wirh a joint Life Payment Option, what will the survivor receive upon the death of the first annuitant? A. The remaining period certain B. The undistributed balance C. The same amount they were receiveing together D. Nothing
D - The joint life payment option ceases all distributions at the first death of any of the annuitants. This would be the case if a Life Income Joint and Survivor Option were chosen.
The period of time from the first deposit into an annuity to the selection of a settlement option is considered the ______period A. Annuity B. Annuitization C. Deferred D. Accumulaton
D - The period of time from the first deposit to the selection of a settlement option is considered the accumlation period, during which taxes are deferred. Accumulation periods are found within deferred annuities
An annuity that is purchased with contributions made as often and in whatever amounts the owner wishes, subject only to the insurer's minimums and maximums, is called: A. A periodic premium annuity B. A fixed premium annuity C. A single premium annuity D. A flexible premium annuity
D - This defines a fleible premium annuity
An annuity that is purchased with contributions made as often and in whatever amounts the owner wishes, subject only to the insurer's minimums and maxiumuns, is called: A. A fixed premium annuity B. A single premium annuity C. A perodic premium annuity D. A flexible premium annuity
D - This defines a flexible premium annuity.
All of the following are True regarding a Variable Annuity, except: A. Premiums paid during the accumulation period are invested into a separate account(s) A. Premiums paid during the accoulation period are invested into a separate account(s) B. Upon annuitization unitys are converted into annuity units, which generate income based on the value of the units. C. The contract owner bears the investment risk and receives the return actually earned on invested assets, less any changes assessed by the insurer and investment manages D. The number of annuity units received upon annuitization, and the unit value, remain level.
D - With Variable Annuities, upon annuitization, the number of units remains level, but the unit valves fluctuate based upon the separate account(s) selected.
K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account(s) is 3%, the effect on this month's income benefit check will be such that it: A. Becomes Higher B. Remains the Same C. All Depends on the Separate Account(s) Selected D. Becomes Lower
D - if the actual return is lower than the AIR, the monthly annuity payment will be reduced. If the actual return is equal to the AIR, The montly annuity payment will remain the same as the previous month. If the actual return is greater than the AIR, the monthly annuity payment will increase from the previous month.
Annuity
Issued as a contract Liquidates an estate Provides steady income until death Protects against living too long Owner, annuitant, beneficiary Pays a living benefit
Life income with period certain
Life income to the annuitant or specified period, whichever is longer
Upon annuitizing an annuity, all of the following factors help in determining the amount of the income benefit payment , except: A. Age B. Gender C. State of residence D. Settlement option
c - Upon a lilfetime annuitization, payment will be made to annuitant based upon the annuitant's age, gender, settlement option selected, and dollar amount used to fund the income benefit payments.
