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Section 7.3 Quiz

1
Section 7.3 Review

An annuity must be funded through period payments.

a)
b)
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2

Annuity payments can be made on a __________ basis.

a)
b)
c)
d)
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3

If the annuitant dies prematurely before the annuity balance is depleted, which of the following payout options allow the balance of the principal to be paid out in a lump sum to the annuitant's beneficiary?

a)
b)
c)
d)
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4

Under the Joint and Full Survivor option if one annuitant dies, the survivor receives the rest of the principal. If the survivor dies, what happens to the balance?

a)
b)
c)
d)
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5

The provides a guaranteed benefit amount, payable for the life of the annuitant. The payments fluctuate according to the value of an account invested primarily in common stocks.


Word bank: fixed annuity, variable annuity

The fixed annuity provides a guaranteed benefit amount, payable for the life of the annuitant. The variable annuity payments fluctuate according to the value of an account invested primarily in common stocks.

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