Term
| Jeffrey is a client of yours who wishes to retire when he is 65. He wants to use his whole life policy to fund his retirement with an income he cannot outlive. If the policy has been in effect for many years what yould you suggest he do? |
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Definition
| Purchase an nnuity with the cash value. This choice will allow jeffrey to convert his cash value into an income that he cannot outlife. This is the only way for the insured to receive a lifetime income from a whole life policy. |
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Term
| T/F Most frequently, an annuity is used to assist a person to plan for retirement |
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Definition
| True. Annuititses can used for other things but they are frequently used for retirement planning purposes |
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Term
| A ____________ annuity will fluctuate with the underlying investment |
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Definition
| Variable. The name, variable annuities describes the nature of this type of annuities. Everything about it is variable |
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Term
| T/F A flexible-premium deferred annuity allows deferred interest accumulation |
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Definition
| True. The name describes the characteristics of the product. Premiums are flexibe, the pay out is deferred; the product is an annuity. |
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Term
| An obligation that is different to the insurance company for both the accumulation period and the liquidation period best describes what? |
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Definition
| Annunity. The insurers obligation durig the accumulation period is to invest the money. Its obligaiton during the liquidation period is to pay out the money. |
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Term
| An insurer wil pay out annuity that stipulates monthly annuity payments for like with "10 years certain." How will this be done? |
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Definition
| Until the annuitant dies, but if the annuitant dies before 10 years is up, the remainder of the 10 years of payments goes to the beneficiary. This is the definition of how a life income with a 10 year period certain works |
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Term
| A vairable annuity is considered a good hedge against inflation since the investment within it is normally |
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Definition
| a seperate account of common stocks. Common stocks are generally used to hedge against inflation. |
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Term
| An annuity, purchased for saving money to be used int he future, is an example of a: |
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Definition
| non-qualiied plan. annuities are used to accumulate money for the future. The word "non-qualified" means that the government does not set the rules as to how it operates. |
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