Annuities
Which of the following is NOT included in an annuity contract?
AD&D rider
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 be Pau her $1,500 per month beginning at age 60. Which of these annuities did this woman purchase?
Deferred Fixed annuity
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 payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible installment Deferred
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 has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?
Life Annuity with Period Certain
Which of these is an element of Single Premium annuity
Lump-sum Payment
Which of these statement concerning an concerning an individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
A Variable Annuity has which of the following characteristics?
Underlying equity investments
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
How does an indexed annuity from a fixed annuity?
indexed annuity owners may receive credited interest tied to the fluctuation of the linked index
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
Variable annuities may premiums in each of the following, EXCEPT:
Insurer's corporate business account
K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase?
Single Premium Immediate Joint with Survivor Annuity.
The annuity that represents the largest possible monthly payment to an individual annuitant is a(n):
Straight Life Annuity
An individual who purchases a Life annuity is given protection against:
The risk of living longer than expected.
A(n) _______ Annuity pays benefits based on units rather than stated dollar amounts
Variable
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?
Variable
T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company
Does NOT have to make any further payments
All of the following statements a Tax Sheltered Annuity (TSA) are true EXCEPT
Income derived from the TSA is received income tax-free
Which of the following are Equity Indexed annuities typically invested in?
S&P 500
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
