Annuities

An immediate annuity consists of a

Single Premium

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

Variable

Which type of contract liquidates an estate through recurrent payments?

annuity

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?

immediate annuity

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)

straight life annuity

The contract owner terminates an annuity before the income payment period begins. The owner will then receive

the current contract surrender value

An individual who purchases a Life annuity is given protection against?

the risk of living longer than expected

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

Which of the following is NOT included in an annuity contract?

AD&D rider

The payments on Q's annuities are no less than $250 quarterly. Which of the following annuities does Q own?

Flexible installment deferred

Which of the these statements concerning an Individual Straight life annuity is accurate?

payments are made to an annuitant for life

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

fixed deferred

The type of annuity that can be purchased with one monetary deposit is called 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

K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n)

installment refund annuity