Annuities

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

Beneficiary

Which of the following is another term for the accumulation period of an annuity?

pay-in period

All of the following are true of an annuity owner EXCEPT

The owner must be the party to receive benefits.

Which of the following is NOT true about a group annuity?

It can be owned by individual employees.

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called

Life income with period certain.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value

If a beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid?

The annuitants estate

When an annuity is written, whose life expectancy is taken into account?

annuities

Which of the following best describes a pure life annuity settlement option?

Pure life provides payments for as long as the annuitant is alive.

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate.

Which of the following is TRUE regarding the accumulation period of an annuity?

It is a period during which the payments into the annuity grow tax deferred.

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Immediate annuity

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization period