Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

These are not necessarily complete definitions, but there is only one possible answer for each term. Single premium annuity contract A. This is the portion

image text in transcribed

These are not necessarily complete definitions, but there is only one possible answer for each term. Single premium annuity contract A. This is the portion of principal and interest not returned before the purchaser dies. Immediate annuity B. This annuity's monthly income varies as a function of the insurer's actual investment experience. Installment premium annuity contract C. The insurance company safeguards the principal and agrees to a minimum interest rate over the life of the contract. Survivorship benefit D. Often purchased by individuals, this annuity allows periodic payments made over time. Deferred annuity E. This annuity states that benefit payments can be stretched for a number of years. Pure life F. The purchaser receives a specified amount of income for life, without regard to the distribution period and with the contract terminating upon death. Life annuity, period certain G. This annuity, if purchased right before retirement, has the stream of monthly benefits beginning a month or so after purchase. Annuity certain H. In this type of contract, the benefits aren't limited to the purchaser only but may extend to named beneficiaries. Fixed-rate annuity I. A lump-sum payment purchases this annuity. Variable annuity J. This type of annuity pays a set amount of monthly income for a specified number of years for the insured and beneficiaries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

R In Finance And Economics A Beginners Guide

Authors: Abhay Kumar Singh, David Edmund Allen

1st Edition

9813144467, 978-9813144460

More Books

Students also viewed these Finance questions

Question

Define the goals of persuasive speaking

Answered: 1 week ago