Lesson 3: 8 annuities
Which of the following is not included in an annuity contract
AD&D rider
P is 40 year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age 60. Which of the following did she not buy?
An immediate annuity
And annuity promises that, if an annuitant dies before receiving payment equal to the current value, the payments will be continued to the beneficiary until the amount equal to the contract value has been paid. The type of annuity is called
And installment refund annuity
An annuity promises that if the annuitant dies before receiving payments equal to the current value the payments will be continue to the beneficiary into an amount equal to the contract value has been paid what type of annuity is called
Aninstallment refund annuity
Which type of contract liquidates in a state through recurring payments?
Annuity
What is Considered to be a characteristic of an immediate annuity?
Benefit payments start within one payment period of purchase
What is considered to be characteristic of And immediate annuity?
Benefit payments starting within one payment. Of purchase
PH5 purchased annuity that he will fund with $500 a month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type annuity did P purchase?
Deferred
G purchased a $50,000 single premium, straight life annuity two years ago. She has received monthly Payments from the annuity. When she dies the insurer
Does not have to make any further payments
N age 50 recently bought annuity that will pay a guaranteed 2000 month at age 70 for life. What type annuity did and purchase?
Fixed deferred
In purchases and annuity by making payments in And amount no less than $100 Quarterly. This describes which of the following annuities?
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
Immediate annuity
What type of annuity that can be purchased with one monetary deposit is called a
Immediate annuity
T8 70 withdraws cash from a profit-sharing plan and purchases a straight life annuity. What will this transaction provide?
Income they cannot be outlive by the owner
How does an indexed annuity differ from a fixed annuity
Indexed annuity owners receive credited interest tied to the fluctuations of the linked index
Variable annuity may invest premiums in each of the following except
Insurers corporate business account
T has an annuity that guarantees and income payment for the rest of her life. The contract also guarantees that if he dies before receiving payments for 20 years, the remaining payments will be paid to her son for the balance of 20 years. What type of annuity is this
Life annuity with period certain
Which of these is an element of a single premium annuity
Lump-sum payment
Which of these statements concerning an individual straight life annuity is accurate
Payments are made to an annuitant for life
Which of these statements concerning an individual straight life annuity is accurate?
Payments are made to an annuitant for life
Equity indexed annuity's are invested in which of the following
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
An immediate annuity consist of a
Single premium
And immediate annuity consist of a
Single premium
Asked 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
Single premium Will start providing income payments within the first year, but usually starts within 30 days from the purchase date
The annuity that represents the largest possible monthly payment to an individual annuitant is a
Straight Life annuity
If an annuity is terminated prior to beginning of the income payment. The contract owner receives
The contract surrender value at the time
Which of the following statements regarding a tax sheltered annuity TSA is incorrect?
The income from the TSA is received income tax-free. (What It is true( TSA A tax sheltered annuity is available to employees of nonprofit organizations, the interest earnings are tax deferred, the amount contributed to deductible from taxable income)
An individual who purchases a life annuity and protection against
The risk of living longer than expected
Which of the following is a characteristic of a variable annuity?
Underlying equity investments
What type of annuity has a cash value that is based upon the performance of his underlying investment funds?
Variable
What type of annuity has a cash value that is based upon the performance of its under lined investment funds?
Variable
Which of the following annuity pays benefits based on units rather than specific dollar amount?
Variable annuity
Which type of contract liquidates an estate through recurrent payments?
annuity
