Annuity – WebCE with Correct Solutions 2024

Annuity – WebCE with Correct Solutions 2024 Annuitization is - Answer -Accumulated values are converted into a stream of periodic income payments. How often can payments of annuities be paid out? - Answer -A specified term of years, for life, or a combination of the two. What is the reason (how has a consumer's priorities and needs shifted) that annuities are well suited for late-life retirement planning? - Answer -When a consumer priorities and needs typically shift from asset accumulation to income distribution What is the start date range for deferred income annuities? - Answer -Anywhere from 13 months to 40 years in the future. What is the age that Deferred Income Annuities' income start date cannot extend past? - Answer -85 years old. What are Surrender Charges? - Answer -Fees the insurer assess for early withdrawals or contract surrenders. What is a Withdrawal Fee? - Answer -when less than the full contract value is taken. What are the two approaches for insurers to determine the surrender charge? What are other ways? - Answer -1) Account Value Method 2) Premium Deposit Method 3) Market Value Adjustments 4) Premium Tax What is the Premium Deposit Method of determining the surrender charge? - Answer -The charge on the amount of the contract's invested premium, applying a percentage that usually declines annually over the surrender charge period.