annuities

what happens to cash value of a market value adjusted annuity if it is surrendered prior to the end of the stated guarantee period?

it is subject to market value adjustments

the contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity dates are called

nonforfeiture options

which of the following would most likely purchase an immediate annuity

retiree having a lump sum to invest

the authority to change the beneficiary in an individual annuity lies with

the owner

The owner's cost basis for a non-qualified deferred annuity is typically the same as the

total premiums paid

what is the tax treatment of benefit payments for a non-qualified annuity

benefit payments are always taxable

When a sum of money undergoes capital liquidation, that sum will

decrease in size

surrender charge

a back-end load on a deferred annuity that is cancelled in the early years

what co-annuitants listed below receive the largest monthly benefit payments in joint and 100% survivor annuity?

ages 71-73

during an annuity's liquidation phase, the annuitant normally

receives benefit payments at regular intervals

what does a fixed life annuity offer protect against?

savings depletions due to longevity

under a deferred annuity, which contract feature initially charges a 5-10% fee that eventually reduces to 0 after a stated period of time?

surrender charge

the exclusion ratio determines

the amount of an annuity payment subject to income tax

when do the owner's contractual rights begin under an individual annuity contract?

time of purchase