Annuities
S recently received a $500,000 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
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT?
The income from the TSA is received income tax-free
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?
Variable
Which of these is an element of a Single Premium annuity?
lump-sum payment
An individual who purchases a Life annuity is given protection against
the risk of living longer than expected
Variable annuities may invest premiums in each of the following EXCEPT
Insurer's corporate business account
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
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