Annuities

Question 1

Pure Life Annuity

Answer 1

• Pays MAX income
• Not good for leaving to beneficiary
• Risk is get 1 payment then die
• Payments for life

Question 2

Life Annuity w/ Guaranteed Minimum Payments

Answer 2

• Payments for minimum term, payable to bene if die before min term
• or until death if you exceed min term
• Less monthly income than Pure Life Annuity

Question 3

Installment Refund Annuity

Answer 3

• Payments continue for min term
• Or until death w/ cash refund option for bene
  Ex: you paid $250k for it, received $175k in payments prior to death, bene gets $75k. ($250k-$175k)