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1.
Since you may die before you collect the full value of your annuity through the life annuity option, it is better to select an option with a period certain provision.
False. Though this could be true, it really depends upon one's objectives. Each option has benefits and tradeoffs.
2.
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.
3.
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.
4.
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.
5.
The earnings on fixed annuities are free from taxes until you annuitize.