Question
Please answer the questions below. Keep the answers short. Thanks, 1. Will a fixed indexed annuity based on the S&P 500 index experience lower gains
Please answer the questions below. Keep the answers short. Thanks,
1. Will a fixed indexed annuity based on the S&P 500 index experience lower gains than a variable annuity with funds invested in a portfolio that matches the S&P 500?
2. Deshawna is 65 years old. She paid $240,000 for an immediate annuity of $2,000 a month for her lifetime. The contract does not provide for any refunds. According to the Internal Revenue Service regulations, her life expectancy is 85 (20 years of the annuity). She receives 12 monthly payments in the first year of her contract. How much of her income from the annuity is taxable for that year?
3. Hassan is 45 years old. You are a life insurance producer, and Hassan has indicated that if he dies prematurely he wants coverage that will replace the portion of his income needed to support his family until he would have retired (at age 65). He expects his average annual earnings will be $64,000, of which he expects half will be needed to support of his family. He agrees that an annual discount rate of 5% is appropriate. How much insurance does this suggest for Hassan?
4. Is the continuing annual premium after conversion of a term insurance policy to permanent (cash-value) coverage lower if an original-age conversion is used than if an attained-age conversion is used?
5. What are the premiums for a variable annuity used to purchase during the funding period?
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