Variable Annuities

Question 1

AIR

Answer 1

Assumed Interest Rate - estimated annual interest rate for variable annuity

Question 2

How are annuity dividends and capital gains taxed?

Answer 2

Tax-deffered

Question 3

LIFO Accounting

Answer 3

Last In First Out - Taxable income comes out first, followed by non-taxable

Question 4

GMIB

Answer 4

Guaranteed Minimum Income Benefit - guarantees a minimum rate of growth after account is annuitized

Question 5

Does the death benefit of a variable annuity apply before or after annuitization?

Answer 5

before