Annuities

Joint life

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Certain groups of employees only

A tax-sheltered annuity is a special tax-favored retirement plan available to

Surrender charge

After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. The insurer returns all the premium payments to the owner, except for a predetermined percentage. What is this percentage called?

The annuitant must be a natural person

The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?

It may last for the lifetime of the annuitant

Which of the following is TRUE regarding the annuity period?

The CEO of a private corporation

All of the following employees may use a 403(b) plan for their retirement EXCEPT

Tax deductible contributions

The advantage of qualified plans to employers is

Life income with period certain

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

Annuitant

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

It is a life contingency option

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT

Straight Life

All other factors being equal, which of the following types of annuities will generally provide the highest monthly income?

Married individuals must contribute into one account for both spouses, up to a specified amount for each person.

Which of the following statements is INCORRECT concerning an IRA?