chapter 7 annuities quiz Flashcards

a 45 year old woman won $100,000 in a scratch off lottery ticket. she purchased an annuity that will pay her $1500 per month beginning at the age of 60. which of these annuities did this woman purchase?

deferred fixed annuity

which of the following are equity indexed annuities typically invested in

type of tax deferred annuity whose credited interest is linked to an equity index

variable annuities may invest premiums in each of the following except

insureres coporate business account

which of these is an element of a single premium annuity

lump sum payment

K is an annuitant currently receiving payments. if she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. this is called an

installment refund annuity

this promises that if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid.

the type of annuity that can be purchased with one monetary deposit is called

all of the statements regarding a tax-sheltered annuity (TSA) are true except

income derived from the TSA is received income tax free

upon retirement payments received by employees from the accumulated savings is tax sheltered annuitites are treated as ordianary income

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

T age 70 withdraws cash from a profit-sharing plan and purchases a straight life annuity. what will this transaction provide?

income that cannot be outlived by the owner