L1: Life Annuities

Question 1

Life Annuity

Answer 1

contract depended on survival of recipient (annuitant)
paid into in early years as young adult (premium) and cash flow received in retirement or other sources of income

Question 2

Whole Life Annuity

Answer 2

contract makes payment till annuitant dies

Question 3

Temporary Life Annuity

Answer 3

term life annuity makes payments for some maximum period while annuitant alive

Question 4

Single Premium Deferred Annuity (SPDA)

Answer 4

one premium in exchange for annuity streamline of payments that occur at some future date specified in contact. Continue as long as annuitant survives and some have death benefit and guaranteed period

Question 5

Regular Premium Deferred Annuity (RPDA)

Answer 5

premiums paid through deferred period in exchange for annuity streamline of payments that occur at some future date specified in contact. Continue as long as annuitant survives and some have death benefit and guaranteed period

Question 6

Joint Life annuity

Answer 6

issued on two lives, make payment while both lives survive and stop on first death of the two lives

Question 7

Last survivor annuity

Answer 7

similar to joint life annuity but payment occur till second death of couple

Question 8

Reversionary annuity

Answer 8

contingent on two lives (annuitant and insured), payments made to annuitant after death of insured till annuitant dies

Question 9

Guaranteed Annuity

Answer 9

paid for minimum period regardless of whether or not annuitant is alive or dead. After period continues as long as annuitant survives

Question 10

Can annuities be surrendered?

Answer 10

They cannot be lapsed or surrendered by a missed premium