What type of annuity has a cash value that is based upon the performance of it’s underlying investment funds? |
Variable |

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 |

Which of these is an element of a single premium annuity? |
Lump-sum payment |

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n) |
Straight life annuity |

Which of these statements concerning an Individual Straight Life annuity is accurate? |
Payments are made to an annuitant for life |

And individual who purchases a life annuity is given protection against |
The risk of living longer than expected |

What is considered to be a characteristic of an immediate annuity? |
Benefit payments start within one payment period of purchase |

And immediate annuity consists of a |
Single premium |

Which type of contract liquidates and estate through recurrent payments? |
Annuity |

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 |

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 |

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 |

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 |

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 |

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 |

How does an indexed annuity differ from a fixed annuity? |
Indexed annuity owners receive credit interest tied to the fluctuations of the linked index |

The type of annuity that can be purchased with one monetary deposit is called a(n) |
Immediate annuity |

# 7 – Annuities (Test only has 10 questions)

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