Exam 15: Annuities

When an annuitant receives liquidation payments,part of the payment is a return of principal and is thus exempt from Federal Income tax. The tax-exempt portion of the payment is calculated using the:

Which of the following does not affect how monthly annuity benefit payments are calculated?

A pure annuity has the greatest monthly benefits per $1,000 of premium payment.

Life annuities may be classified according to all but which one of the following criteria?

A male age 65 will receive lower monthly benefits per $1,000 of premium payment than a female age 65,because of the female's better longevity.

The period during which the insured is making annuity payments to the insurer is the:

An annuity,five years certain,makes payments to the annuitant:

Explain the purpose of the annuity contract in a financial plan.

Judy has $500,000 with which to purchase a single-premium annuity. Which annuity should she buy if she wants to maximize her monthly liquidation payment?

What is the difference between a SPDA and a FPDA?

The 1983 Individual Annuity mortality table assumes that all people in the annuity pool die before they are age:

Insurers have greater administrative charges for flexible-premium deferred annuities (FPDAs)than they do for single-premium deferred annuities (SPDAs)because:

No medical exam is required for the purchase of an annuity,no matter how old the applicant.

Which of the following is correct regarding the federal income taxation of annuities that are purchased with after tax dollars?

The amount paid for an annuity divided by the expected return from the annuity is the:

Which of the following statements is false?

How do insurers classify annuities to describe their benefits?

Which of the following is false regarding the annuity contract?

A variable annuity is usually paid for on a deferred basis.