TYPES OF ANNUITY INCOME Flashcards
1
Q
IMMEDIATE annuity- MUST SHOW ID
A
clients begin receiving payments 1-yr from purchase date
- MUST be funded by a LUMP-SUM
2
Q
Deferred Annuity- MUST SHOW ID
A
clients receive payments 1yr from purchase
- could be funded by series of payment OR a lump-sum
3
Q
level income
A
annuity payments will remain the SAME
4
Q
Indexed income
A
will increase at a fixed % every year
5
Q
Variable income
A
Interest rate linked to current market value
6
Q
A
