Chapter 14 Flashcards
A form of insurance that provides a person with a future income while they are still alive is called..?
annuity
An annuity is or is NOT a life insurance policy
is NOT
Life insurance creates a(n) _________?
immediate estate
_______ liquidate an estate.
Annuities
The period of time when the annuity owner makes payments into the annuity is called..?
accumulation period
The period of time when the annuity owner stops paying into the annuity and starts receiving money is called..?
annuitization period
There are ____ people involved in an annuity
3
The people involved in an annuity are..?
1.) owner
2.) annuitant
3.) beneficiary
There are _____ types of annuities
3
The types of annuities are:
1.) fixed annuities
2.) variable annuities
3.) equity-indexed annuities
The _______ takes on the risk of the separate account
insured (owner/annuitant)
In order to sell a variable annuity, you need both a ______ and ________.
life agent license, a securities license
Premiums paid into a variable annuity are invested into a _______ which is organized as a trust for the benefit of the annuitant.
separate account
The account associated with this annuity is linked to a stock market is called..?
equity-indexed annuities
Annuities have 2 premium payment options:
1.) single payment/lump sum
2.) periodic
Annuities have 2 payout options. Please name the options:
1.) immediate
2.) deferred
_________ provides payments to the annuitant as long as they live, with no guarantee that all the money will be paid out.
Life (aka straight life or pure life)
Payments provided to the annuitant for as long as they live, with a guaranteed minimum period of payments is called..?
life with period certain
Payments provided to the annuitant for as long as they live and, at the annuitant’s death, any unpaid principal is refunded to the beneficiary in either cash or installment payments is called..?
life with refund
