Created from Youtube video: https://www.youtube.com/watch?v=OzD0syM2d70videoConcepts covered:annuities, retirement funding, tax-deferred growth, life insurance, payout options
Annuities are financial products that allow individuals to invest a large sum of money, which is then distributed as income over a specified period or for the annuitant's lifetime. They are primarily used for retirement funding, offering tax-deferred growth and various payout options, and are sold by life insurance companies, involving three parties: the owner, annuitant, and beneficiary.
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Annuity Principles And Concepts - Life Insurance Exam Prep
Concepts covered:annuities, retirement funding, tax-deferred growth, life insurance, payout options
Annuities are financial products that allow individuals to invest a large sum of money, which is then distributed as income over a specified period or for the annuitant's lifetime. They are primarily used for retirement funding, offering tax-deferred growth and various payout options, and are sold by life insurance companies, involving three parties: the owner, annuitant, and beneficiary.
Question 1
Annuities can provide income for life or a set period.
Question 2
Why choose an annuity over a bank account?
Question 3
The period when the owner pays into the annuity is called the _____ period.
Question 4
CASE STUDY: A 60-year-old man wants to invest his retirement savings in an annuity to ensure a steady income stream for the rest of his life. He is considering different types of annuities and wants to know which option would provide him with a guaranteed income without exposure to market risks.
Which annuity type guarantees income without market risk?
Question 5
CASE STUDY: A 45-year-old woman is considering investing in an annuity for her future retirement. She wants to know the factors that will influence the amount of income she will receive from the annuity.
Select three factors affecting annuity income amount.
Question 6
Annuities offer tax-deferred growth on accumulated interest.
Question 7
What is the primary purpose of an annuity?
Question 8
In a variable annuity, the value fluctuates with the _____ market.
Question 9
CASE STUDY: A couple in their late 50s is planning for retirement. They want to invest in an annuity that allows them to start receiving payments immediately after retirement. They are considering their options and need advice on the best type of annuity for their situation.
Which annuity type starts payments immediately?
Question 10
Variable annuities guarantee a fixed interest rate.
Question 11
Who receives payments in an annuity?
Question 12
An indexed annuity is typically invested in indexes like the _____ .
Question 13
Immediate annuities start payments after five years.
Question 14
What affects annuity income amount?
Question 15
The owner of an annuity can be a corporation, a trust, or a _____ .
Question 16
Annuities can be used for retirement and college funding.
Question 17
How does a fixed annuity grow?
Question 18
An annuity is a cash accumulation vessel that provides income for _____ or a specific number of years.
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