There is no advantage
The employer receives a tax deduction for the contributions
Receiving a lump-sum settlement tax free
Guaranteed minimum benefit
Nothing; the payments will cease
The amount paid into the annuity
The remainder of the principal
The owner will receive some of the money back, which will depend on the surrender value established by the insurer at the time that the contract is terminated
It is not possible to surrender an annuity before the annuitization period.
Non-Forfeiture Option guarantees that the owner will receive a surrender value of the contract
The insurance company will apply the money to another annuity or a Life Insurance policy, but the money cannot be returned
Life Income Joint and Survivor Option
Life Income Option
Joint Life Option
Life Income with Refund Option
Annuities do not use the pooling technique to spread risk
An owner may change the annuity date, the beneficiary, or the settlement option
Once the payout period begins, the annuitant recieves periodic payments
The accumulation period is the period prior to the annuitzation date
Annuities may use a beneficiary designationin case of the annuitant's death
Premature distributions are subject to a 15% penalty tax in order to discourage the use of annuity contracts as a short-term tax shelter.
Owners of individual annuities have contracted rights beginning at the time of purchase.
Business Corporations may use annuities to provide pensions for employees, either nonqualified or qualified plans, or to structure payments of liability settlements.
Joint and Survivorship
Contributions may be as often and as large as the owner desires
The owner may cancel at anytime
Surrender charges could occur if cancelled in early years
Life income with Period Certain
Life income with refund
The insurer's assets guarantee the fixed annuity contract
The purchasing power of a fixed amount decreases as the cost of living increases
It must include a projected schedule of cash availability on its anniversary date, for a minimium of 10 years
The insurere bears any investment risk.
Upon annuitization, the accumaltion units are converted to annuity units. The income is paid based on the valueof the units.
The contract owner bears the investment risk and recieves the return actually earned on invested assets, less any charges assesses by the insurer.
Premiums paid during the accumlation period are invested in a seperate account(s).
The number of annuity units recieved, and the unit value, remain level.
Single Premium IRA
Single Premium Immediate Annuity
Tax Sheltered Annuity
Ten year Certain
The cash value, plus the sum of the premiums paid, equals the equity in the contract.
The face amount, less the cash value, equals the equity in the contract
The face amount, plus the cash value, equals the equity in the contract.
The cash value, minus the sum of the premiums paid, equals the equity in the contract.