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Flashcards in Variable Annuities Deck (5)
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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