13. Which of the following is true concerning the annuity contract? a. at the beginning of the accumulation phase, the annuitant irrevocably selects the distribution method for the liquidation phase b. the accumulation phase must be a long period of time C. the annuitant generally can elect to begin to distribute the accumulated funds at any age d. annuitants always receive back all money paid into the annuity contract 14. Which of the following does not influence how an insurer calculates monthly annuity benefits? a. age d. number of years worked b. sex e. interest rates c. amount of premium the annuitant has paid 15. A life annuity which pays nothing to the beneficiary upon the annuitant's death is the a. period certain annuity d. joint-and-last survivor annuity b. straight life on pure annuity c. premium refund annuity 16. A life annuity with five years certain, pays: a. annuity for 5 years or until annuitants death, whichever event happens last b. annuity payments for only the first 5 years of retirement c. annuity payment only if the insured dies within the first five years d. annuity payment for 5 years or until the annuitant's death, which ever event happens first
13. Which of the following is true concerning the annuity contract? a. at the beginning of the accumulation phase, the annuitant irrevocably selects the distribution method for the liquidation phase b. the accumulation phase must be a long period of time C. the annuitant generally can elect to begin to distribute the accumulated funds at any age d. annuitants always receive back all money paid into the annuity contract 14. Which of the following does not influence how an insurer calculates monthly annuity benefits? a. age d. number of years worked b. sex e. interest rates c. amount of premium the annuitant has paid 15. A life annuity which pays nothing to the beneficiary upon the annuitant's death is the a. period certain annuity d. joint-and-last survivor annuity b. straight life on pure annuity c. premium refund annuity 16. A life annuity with five years certain, pays: a. annuity for 5 years or until annuitants death, whichever event happens last b. annuity payments for only the first 5 years of retirement c. annuity payment only if the insured dies within the first five years d. annuity payment for 5 years or until the annuitant's death, which ever event happens first
Answer
13) A) at the beginning of the accumulation phase, the
annuitant irrevocably selects the distribution method for the
liquidation phase.
Explanation: An annuitant has to decide while taking an annuity
that how the payout will be i.e. the payouts will be till the time
he is alive or it will continue till certain age even after his
death and beneficiary will get the payment.
Annuitant cannot choose any time for distribution, as some
annuities have minimum age for payout. Annuitants may not receive
all the money paid by them in an annuity contract if they die
before the contract, because the money goes to the beneficiary and
not the annuitant.
14) D) number of years worked
Explanation: The annuity benefit is affected by age, sex,
premium paid, interest rate but not by number of years worked.
15) B) Straight life on pure annuity
Explanation: It is an annuity which does not pay anything to the
beneficiary on annuitants death.
16) A) annuity for 5 years or until annuitants death,
whichever comes last
explanation: In case of a life certain annuity, the annuitant is
paid out until his death. If the annuitant outlives his income or
in this case crosses 5 years will still teceive payouts, and the
payouts to the beneficiary will be cancelled.
