Chapter Seven Quiz Flashcards
Annuities can be used to fund which of the following?
Retirement plans
Which of the following products will protect an individual from outliving their money?
Annuity
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitants life and ceases at the annuitants death?
Pure life
All of the following statements are true regarding installments for a fixed period annuity settlement option except:
It is a life contingency option
All of the following statements about equity index annuities are correct except:
The annuitant receives a fixed amount of return
Fixed annuitities provide all of the following except:
Hedge against inflation
Who is eligible to purchase an IRA?
Anyone who has earned income
An Internal Revenue Code provision that specifically provides for an individual retirement plan for public school teachers is a(an):
403(b) Plan (TSA)
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
Fixed amount
Which of the following is true regarding a market value adjusted annuity?
The owner is gauranteed a fixed interest rate for a specific period of time
In a fixed annuity, which of the following is true regarding the guaranteed interest rate of the investment?
The annuitant will receive the higher of either the guaranteed minimum rate or current rate
The term “fixed” in a fixed annuity refers to all of the following except:
Death benefit
