Question
Thomas purchases a term annuity from Big Rock insurance company that names his brother Horatio as the beneficiary. The annuity pays Thomas a fixed amount
Thomas purchases a term annuity from Big Rock insurance company that names his brother Horatio as the beneficiary. The annuity pays Thomas a fixed amount for the next 10 years. Thomas meets with his insurance agent, Sandy, because he is considering making some changes to the annuity if possible. Which of the following changes would Thomas be eligible to make to his annuity?
a) surrender his contract and receive a lump sum of the remaining capital
b) change the beneficiary to his sister Jory
c) reduce the payment amount and extend the payout term
d) increase the payment amount and reduce the payout term
Step by Step Solution
3.50 Rating (147 Votes )
There are 3 Steps involved in it
Step: 1
ANSWER D d increase the payment amount and reduce the payout term It is the number of dividends paid ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Understandable Statistics Concepts And Methods
Authors: Charles Henry Brase, Corrinne Pellillo Brase
12th Edition
1337119911, 978-1337517508, 133751750X, 978-1337119917
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App