Investments Flashcards
10-year term annuity
annual incomes would be the highest
Life annuity
Will pay only for life, would be second highest annual incomes
Life annuity with installment option
Will pay for life, but if owner dies his initial premium is paid back, it will keep paying to his beneficiaries until his entire premium has been paid back
Life annuity with lump sum refund option
Will pay for life, but if he dies before his initial premium is paid back, it will refund the difference as a lump sum
Term Rate Adjustment
the insurer would look at the rate it would have given at the very beginning if it knew the person would have only kept the money invested for a shortened period of time.
IVIC increased in value
Proportionate method would result in the highest new guaranteed amount
IVIC decreased in value
Linear method would result in the highest new guaranteed amount
Resetting Gurantees
Resets the 10 year guarantee period
GICS ad Deffered Annuities
GICS are protected by CDIC
Deferred anuities are protected by Assuris
GICS and deffered annuities can be issued on a redeemable basis, with or without penalty
Criteria for an IVIC to be Creditor Proof
- an irrevocable benificary is named OR
- If a revocable beneficiary is named, they must be of the protected class, parents, spouse, children. Can not name an irrevocable beneficiary within a will
Current Rate Market Adjustment
The amount that is being withdrawn would be discounted. The remaining money will continue to earn the original annuity rate
10-year deferred annuity
Cannot be redeemed early, can only redeem the funds after 5 years and subject to back end load fees
Impaired Life annuity
- must prove that your life expectancy is shorter due to illness or disease
- would cost less for the same monthly income, or give you more monthly income for the same premium
Assuris Guarantee
Maximum coverage is 60,000 or 85% of the promised benefits. Which is better for the client
