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1.
The period during which annuity premiums are paid is called the _______.
Accumulation period. In the accumulation period, the annuity owner (annuity holder) pays premiums to the company.
2.
Your monthly income from a fixed annuity is based on _______.
Your age and your sex. Your age and sex are two factors that determine the monthly payment you receive from an annuity. "The value of your investments" indicates a variable annuity.
3.
When you annuitize, you are paying into your annuity account.
False. When you annuitize, you begin receiving income from your annuity.
4.
What is taxed during the accumulation period of a non-qualified annuity?
Annuity contributions. The income you contribute to a non-qualified annuity is subject to taxation during the accumulation period. A non-qualified annuity is one that is outside of a retirement plan.
5.
The better your investment choices pay off, the more your fixed annuity will pay.
False. Fixed annuities earn a fixed income rate and pay a fixed income, regardless of the performance of the underlying investments. You do not make investment choices in a fixed annuitypremiums go into the general account of the company.