RMI 3011 Exam 3 FSU | Florida State University |
UPDATED Questions with 100% Verified Answers
Q1: Annuity
A: *Periodic payment that continues for a fixed period or the rest of a designated life(s)
Q2: *An Annuity is
A: The opposite of life insurance
Q3: Annuitant
A: The person who receives the payments
Q4: Major Types of Annuities (3)
A: 1. Fixed Annuity
2. Variable Annuity
3. Equity-Indexed Annuity
Q5: Fixed Annuity
A: Pays periodic income payments that are both guaranteed and fixed in amt. Little or no
protection from inflation.
Q6: *Accumulation Period
A: Period before retirement, in which premiums gain interest
Q7: Guaranteed Rate
A: Minimum interest rate that will be given to a fixed annuity
Q8: Current Rate
A: Based on current market conditions, guaranteed for limited period
Q9: Liquidation Period
A: Period that funds are paid out, or annuitized
Q10: *The Downside of a Fixed Annuity is
A: Little or no protection against inflation
Q11: Immediate Annuity
A: One where the first payment is due one payment interval from the date of purchase
,Q12: Deferred Annuity
A: Provides income payments at some future date
Q13: Single-Premium Deferred Annuity
A: Deferred annuity purchase with a lump sum
Q14: Flexible-Premium Annuity
A: Allows the owner to vary the premium payments
Q15: Most Annuities are Not
A: Annuitized
Q16: Under the Cash Option
A: Funds can be withdrawn in a lump sum or in installments
Q17: Life Annuity (No Refund) Option
A: Provides a life income to the annuitant only while the annuitant remains alive
Q18: Life Annuity with Guaranteed Payments
A: Pays a life income to the annuitant with a certain number of guaranteed payments
Q19: Installment Refund Option
A: Pays a life income to the annuitant; after the annuitant's death, payments continue to a
beneficiary until they equal the purchase price
Q20: Cash Refund Option
A: Is similar to the Installment Refund Option, but pays the beneficiary a lump sum
Q21: Joint-and-Survivor Annuity
A: Pays benefits based on the lives of two or more annuitants
Q22: Inflation-Indexed Annuity Option
A: Provides periodic payments that are adjusted for inflation
Q23: Variable Annuity
A: Pays a lifetime income, but the income payments vary depending on common stock
prices
Q24: Accumulation Units
A: Premiums are used to purchase these during period prior to retirement
, Q25: Annuity Units
A: At retirement, the accumulation units are converted into these
Q26: An Annuity Unit is
A: An accumulation unit, a sub-account of the retiree's total accumulated annuity which
represent a fixed share of ownership of the insurer's accounts portfolio
Q27: *Longevity Insurance
A: A low-cost annuity because there are no cash values or death benefits in the policy
Q28: Exclusion Ratio
A: Investment in the contract / expected return
Q29: IRA
A: Individual retirement account
Q30: *Traditional IRA
A: Allows workers to take a tax deduction for part or all of their IRA contributions
Q31: Nondeductible IRA
A: Taxpayers with incomes that exceed the phase-out limits can contribute to this
Q32: Spousal IRA
A: Allows a spouse who is not in the paid labor force, or a low-earning spouse to make a
fully deductible contribution to a traditional IRA
Q33: *IRA Rollover
A: Tax-free distribution of cash or other property from one retirement plan, which is
deposited into another retirement plan
Q34: Roth IRA
A: Another type of IRA that provides substantial tax advantages
Q35: Fixed Annuities include
A: 1. Accumulation Period
2. Guaranteed Rate
3. Current Rate
4. Liquidation Period
Q36: Time periods Fixed Annuities could be paid include
UPDATED Questions with 100% Verified Answers
Q1: Annuity
A: *Periodic payment that continues for a fixed period or the rest of a designated life(s)
Q2: *An Annuity is
A: The opposite of life insurance
Q3: Annuitant
A: The person who receives the payments
Q4: Major Types of Annuities (3)
A: 1. Fixed Annuity
2. Variable Annuity
3. Equity-Indexed Annuity
Q5: Fixed Annuity
A: Pays periodic income payments that are both guaranteed and fixed in amt. Little or no
protection from inflation.
Q6: *Accumulation Period
A: Period before retirement, in which premiums gain interest
Q7: Guaranteed Rate
A: Minimum interest rate that will be given to a fixed annuity
Q8: Current Rate
A: Based on current market conditions, guaranteed for limited period
Q9: Liquidation Period
A: Period that funds are paid out, or annuitized
Q10: *The Downside of a Fixed Annuity is
A: Little or no protection against inflation
Q11: Immediate Annuity
A: One where the first payment is due one payment interval from the date of purchase
,Q12: Deferred Annuity
A: Provides income payments at some future date
Q13: Single-Premium Deferred Annuity
A: Deferred annuity purchase with a lump sum
Q14: Flexible-Premium Annuity
A: Allows the owner to vary the premium payments
Q15: Most Annuities are Not
A: Annuitized
Q16: Under the Cash Option
A: Funds can be withdrawn in a lump sum or in installments
Q17: Life Annuity (No Refund) Option
A: Provides a life income to the annuitant only while the annuitant remains alive
Q18: Life Annuity with Guaranteed Payments
A: Pays a life income to the annuitant with a certain number of guaranteed payments
Q19: Installment Refund Option
A: Pays a life income to the annuitant; after the annuitant's death, payments continue to a
beneficiary until they equal the purchase price
Q20: Cash Refund Option
A: Is similar to the Installment Refund Option, but pays the beneficiary a lump sum
Q21: Joint-and-Survivor Annuity
A: Pays benefits based on the lives of two or more annuitants
Q22: Inflation-Indexed Annuity Option
A: Provides periodic payments that are adjusted for inflation
Q23: Variable Annuity
A: Pays a lifetime income, but the income payments vary depending on common stock
prices
Q24: Accumulation Units
A: Premiums are used to purchase these during period prior to retirement
, Q25: Annuity Units
A: At retirement, the accumulation units are converted into these
Q26: An Annuity Unit is
A: An accumulation unit, a sub-account of the retiree's total accumulated annuity which
represent a fixed share of ownership of the insurer's accounts portfolio
Q27: *Longevity Insurance
A: A low-cost annuity because there are no cash values or death benefits in the policy
Q28: Exclusion Ratio
A: Investment in the contract / expected return
Q29: IRA
A: Individual retirement account
Q30: *Traditional IRA
A: Allows workers to take a tax deduction for part or all of their IRA contributions
Q31: Nondeductible IRA
A: Taxpayers with incomes that exceed the phase-out limits can contribute to this
Q32: Spousal IRA
A: Allows a spouse who is not in the paid labor force, or a low-earning spouse to make a
fully deductible contribution to a traditional IRA
Q33: *IRA Rollover
A: Tax-free distribution of cash or other property from one retirement plan, which is
deposited into another retirement plan
Q34: Roth IRA
A: Another type of IRA that provides substantial tax advantages
Q35: Fixed Annuities include
A: 1. Accumulation Period
2. Guaranteed Rate
3. Current Rate
4. Liquidation Period
Q36: Time periods Fixed Annuities could be paid include
