Annuitization is correct answersAccumulated values are converted into a stream of periodic income payments.
How often can payments of annuities be paid out? correct answersA specified term of years, for life, or a combination of the two.
What is the reason (how has a consumer's priorities and...
Annuity - WebCE
Annuitization is correct answersAccumulated values are converted into a stream of periodic income payments.
How often can payments of annuities be paid out? correct answersA specified term of years, for life, or a combination of the two.
What is the reason (how has a consumer's priorities and needs shifted) that annuities are well suited for late-life retirement planning? correct answersWhen a consumer priorities and needs typically shift from asset accumulation to income distribution
What is the start date range for deferred income annuities? correct answersAnywhere from 13 months to 40 years in the future.
What is the age that Deferred Income Annuities' income start date cannot extend past? correct answers85 years old.
What are Surrender Charges? correct answersFees the insurer assess for early withdrawals or contract surrenders.
What is a Withdrawal Fee? correct answerswhen less than the full contract value is taken.
What are the two approaches for insurers to determine the surrender charge? What are other ways? correct answers1) Account Value Method
2) Premium Deposit Method
3) Market Value Adjustments
4) Premium Tax What is the Premium Deposit Method of determining the surrender charge? correct answersThe charge on the amount of the contract's invested premium, applying a percentage that usually declines annually over the surrender charge period.
What is the Account Value Method of determining the surrender charge? correct answersAssess a surrender charge equal to some percentage of the contract's accumulated value.
What is Premium Tax in relation to the annuity? correct answersA number of states impose a tax on annuity premiums.
What does the Mortality and Expense (M&E) charge? correct answersAssessed against the values of the separate subaccounts and is deducted before accumulation unit values are calculated. It helps ensure that the insurer can meet its contractual obligations for annualized income payments and
a minimum death benefit. The cost of a variable annuity's death benefit and annuity charge plus related insurer costs (such as agent commissions and overhead)
Which expense of a Variable Annuity, which is the most criticized? And why? correct answersThe Mortality and Expense.
What fees are built into the Fixed Annuity Contract's interest rate? correct answersThe Commissions it pays to its producers and distributors, its operational costs and reserve requirements, and generates profits. 1) Commissions
2) Operational costs
3) Profits
What are the annuity drawbacks? correct answers1- Lack of Liquidity
2- Contract Surrender Charges
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QUILLSKY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
