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1.
An annuity that pays you income as long as you live, but stops when you die, is a ________.
Life annuity. Life annuities pay the annuitant a regular income as long as he or she lives.
2.
When you invest in a variable annuity, your funds go into the insurance company's general account.
False. In contrast to a fixed annuity, in which your funds are limited to the general account of the insurance company, variable annuities make available separate account investments in the stock, bond, and/or money markets.
3.
With annuities, mortality risk benefits _______.
Both. Annuitants trade the risk of dying before collecting full value for higher payments and possibly collecting more than full value if they live long.
4.
A period certain annuity pays income _______.
For a fixed term. A period certain annuity pays income for a fixed term, even if the annuitant doesnt survive the term.
5.
Which of the following is not a characteristic investment account available with variable annuities?
General account. Stock, bond, and money market accounts are the "characteristic" separate accounts available with variable annuities.