Variable Annuities Flashcards
1
Q
AIR
A
Assumed Interest Rate - estimated annual interest rate for variable annuity
2
Q
How are annuity dividends and capital gains taxed?
A
Tax-deffered
3
Q
LIFO Accounting
A
Last In First Out - Taxable income comes out first, followed by non-taxable
4
Q
GMIB
A
Guaranteed Minimum Income Benefit - guarantees a minimum rate of growth after account is annuitized
5
Q
Does the death benefit of a variable annuity apply before or after annuitization?
A
before
