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What type of annuity has a cash value that is based upon the performance of it’s underlying investment funds? |
Variable |
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T has an annuity that guarantees and income payments 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 |
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Which of these is an element of a single premium annuity? |
Lump-sum payment |
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The annuity that represents the largest possible monthly payment to an individual annuitant is a(n) |
Straight life annuity |
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Which of these statements concerning an Individual Straight Life annuity is accurate? |
Payments are made to an annuitant for life |
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And individual who purchases a life annuity is given protection against |
The risk of living longer than expected |
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What is considered to be a characteristic of an immediate annuity? |
Benefit payments start within one payment period of purchase |
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And immediate annuity consists of a |
Single premium |
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Which type of contract liquidates and estate through recurrent payments? |
Annuity |
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P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? |
Deferred |
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N, age 50, recently bought an annuity that will pay a guaranteed $2000/month at age 70 for life. What type of annuity did N purchase? |
Fixed deferred |
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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 |
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What type of annuity has a cash value that is based upon the performance of its underlying investment fund? |
Variable |
|
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 20 years. What type of annuity is this? |
Life annuity with Period Certain |
|
The annuity that represents the largest possible monthly payments to an individual annuitant is a(n) |
Straight life annuity |
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Which of these statements concerning an individual straight Life annuity is accurate? |
Payments are made to an annuitant for life |
|
Which type of contract liquidates an estate through recurrent payments? |
Annuity |
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P, age 50, purchased an annuity that P will fun with $500/month 15 years. The annuity will then pay P retirement payments after the 15 years. What type of annuity to P purchase? |
Deferred |
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How does an indexed annuity differ from a fixed annuity? |
Indexed annuity owners receive credit interest tied to the fluctuations of the linked index |
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The type of annuity that can be purchased with one monetary deposit is called a(n) |
Immediate annuity |
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