Annuities !

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

• Life expectancy is not a factor when writing an annuity.

• Owner

• Annuitant

• Beneficiary

The term “fixed” in a fixed annuity refers to all of the following EXCEPT

• Death Benefit

• Guaranteed Rate of Interest

• Equal annuity payments

• Amount and length of payments

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?

• Joint limited annuity

• Joint Life

• Joint and Survivor

• Life with certain period

All of the following statements are true regarding installments for a fixed amount EXCEPT

• Value of the account and future earnings will determine the time period for the benefits.

• This option pays a specific amount until the funds are exhausted.

• The annuitant may select how big the payments will be.

• The payments will stop when the annuitant dies

If a beneficiary is NOT named for annuity benefits, to which entity will the benefit be paid?

• the insurance company

• the annitants estate

• the next of kin

• the state government

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

• Estate

• Beneficiary

• Owner

• Insurance company

Which of the following are NOT fundable by annuities?

• Death benefits

• Cash accumulation for any reason

• a persons retirement

• estate liquidation

Under a pure life annuity, an income is payable by the company

• For a guaranteed period of time, whether or not the annuitant survives to the end of that period.

• For as long as either the annuitant or a named beneficiary is alive.

• Only for the life of the annuitant

• Until the principal and interest are exhausted.

The annuity owner dies during the accumulation period of his annuity. The cash value of his annuity exceeds the premiums he paid. There is no named beneficiary. Which of the following is true?

• The state government will receive the amount of premiums paid.

• The premium value will be paid to the annuitant’s estate.

• The state government will receive the cash value of the annuity.

• The cash value will be paid to the annuitants estate

Which of the following is NOT true about a joint and survivor annuity benefit option?

• This option guarantees income for two or more recipients.

• The surviving annuitant may receive reduced payments.

• Payments stop after the first death among the annuitants

• A period certain option may be included.