4. Retirement Annuities Flashcards Preview

Life Insurance (ISR3602) > 4. Retirement Annuities > Flashcards

Flashcards in 4. Retirement Annuities Deck (15)
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1
Q

A … is a person that can be included as a third person in the life insurance policy without being a life insured on the policy.

A

beneficiary

2
Q

The beneficiary has no … to the life insurance policy. He/she is only nominated for the proceeds of the policy when it is due.

A

specific rights

3
Q

A (1)… is an annuity that is taken out without there being any legal compulsion to do so, whilst a (2)… is one that has to be given effect to by operation of some law.

A

(1) voluntary purchase annuity

(2) compulsory purchase annuity

4
Q

Annuity investments are beneficial because they provide a (1)…

Annuity investments also help investors to invest money over (2)…

A

(1) definite & guaranteed monthly income

(2) the long term

5
Q

Current contributions by a member to any … are deductible from his taxable income.

A

retirement annuity fund

6
Q

If the member has a dependent and also nominated a beneficiary, then …

A

the benefit will be paid in proportions determined by the person managing the fund

7
Q

If there is no dependents and no beneficiary was nominated, then ..

A

the benefit will form part of the deceased estate

8
Q

If the fund within 12 months becomes aware of a dependent or dependents of the member, the benefit shall be …

A

paid such proportions determined by the person managing the fund

9
Q

If there is no trace of a dependent within 12 months and the member has designated a nominee, …

The designation of the nominee has to be in writing.

A

the benefit will be paid to the nominee

10
Q

Name the three types of annuities:

A
  1. Fixed annuity
  2. Variable annuity
  3. Indexed annuity
11
Q

There are a number of avenues that can be used to produce an income but none are more permanent, or secure, than an … purchased from an insurer.

A

annuity

12
Q

Name two features of annuity investments:

A
  1. not restricted to any contribution or income limits

2. the earnings earned through them are tax exempt

13
Q

… are those annuities in which the interest rate accorded to the investor is on a fixed and guaranteed basis as per the initial contract.

A

Fixed Annuities

14
Q

… are the latest annuities in such investments and are closely related to the financial index.

A

Indexed Annuities

15
Q

… are annuities based on the performance of mutual funds on which it is dependent upon and hence offers no guarantee as far as returns are concerned.

A

Variable Annuities