Life Annuity Contracts

Question 1

Whole life level annuity

Answer 1

A financial contract between an individual and an insurance company. In exchange for a lump sum payment or a series of payments, the insurance company agrees to disburse regular income payments for a the lifetime of the individual .

Question 2

Temporary level annuity

Answer 2

a temporary annuity is a financial contract between an individual and an insurance company. In exchange for a lump sum payment or a series of payments, the insurance company agrees to disburse regular income payments for a predetermined period.

Question 3

Guaranteed level annuity

Answer 3

is a financial contract between an individual and an insurance company. In exchange for a lump sum payment or a series of payments, the insurance company agrees to disburse regular guaranteed income payments.