Ch3 quiz
Straight life
All other factor being equal, which of the following types of annuities will provide the highest monthly income?
Single premium immediate annuity
An annuity begins payments to the annuitant one month after it is purchased. What type is
Fixed annuity.
An annuity that guarantees a minimum rate of return is known as a/an
Deferred
An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?
To create an estate.
Annuities can be used for all of the following reasons EXCEPT
Deferred.
Annuities may be purchased with all of the following payment methods EXCEPT
The accumulation period.
The time period during which an annuitant contributes to an annuity is called
SEC, FINRA, and Departments of Insurance.
Variable insurance and variable annuities are regulated by
Living longer than expected
What does an annuity protect the contract owner against?
Annuitant
When an annuity is written, whose life expectancy is taken into consideration?
Only the annuity owner
Which of the following has the right to surrender a deferred annuity contract?
Benefits stop at the annuitant's death.
Which of the following is NOT true regarding an annuity certain?
They can provide a lifetime income.
Which of the following statements is truc about annuities?
Life annuity
Which type of annuity settlements stops when the annuitant dies?
The insurance company
Who bears the investment risk in a fixed annuity?