Annuities
An immediate annuity consists of a
Single Premium
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
Which of the following is NOT included in an annuity contract?
AD&D rider
The type of annuity that can be purchased with one monetary deposit is called a(n)
Immediate annuity
Variable annuities may invest premiums in each of the following, except
Insurer's corporate business account
An individual who purchases a life annuity is given protection against
the risk of living longer than expected
What is considered to be a characteristic of an immediate annuity?
Benefit payments start within one payment period of purchase
The annuity that represents the largest possible monthly payment to an individual annuitant is a(n):
Straight Life annuity
Which of the following statements regarding a tax sheltered annuity is incorrect?
The income from the tsa is received income tax-free
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?
An immediate annuity
An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called
An installment Refund annuity
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 statements concerning an individual straight life annuity is accurate?
Payments are made to an annuitant for life