Florida 2-15 Overview/ Study Guide (Fool
Proof Guide): Annuities
Annuity - ANSA savings plan within an insurance company instead of a bank.
- An annuity is not considered insurance, but the life insurance industry handles them
Fixed Annuity - ANSA savings plan with an insurance company with a minimum guaranteed
interest rate
Accumulation Period - ANSThe period in an annuity where the savings is building
Annuity Period - ANSThe payout period of an annuity
What is the purpose of an annuity? - ANSTo provide income for life.
The concept of an annuity is to save during the annuitants working years and payout over the
annuitants retirement years.
Once an annuity is annualized it pays out as long as the annuitant lives.
Annuitization Point - ANSThe point the annuity pays out to the annuitant.
-Usually at age 65
Deferred Annuity - ANSSave for the future early and pay out at a future date. Usually at age 65
Single Premium (Annuity) - ANSYou pay one time payment for the annuity
What are some key features to remember about annuities? - ANS1. Tax Deferred
2. They are protected from suit
3. They tend to earn a greater return than a savings account of a CD at a bank.
What are two ways an annuity is paid out? - ANSImmediate and Deferred
When does an immediate annuity payout? - ANSOne payment interval from the date of
purchase.
Meaning if you buy an annuity today you will have to wait 30 days (one month) to receive the
first monthly payment
What are six different annuity payout options? - ANS1. Straight Life Income
Proof Guide): Annuities
Annuity - ANSA savings plan within an insurance company instead of a bank.
- An annuity is not considered insurance, but the life insurance industry handles them
Fixed Annuity - ANSA savings plan with an insurance company with a minimum guaranteed
interest rate
Accumulation Period - ANSThe period in an annuity where the savings is building
Annuity Period - ANSThe payout period of an annuity
What is the purpose of an annuity? - ANSTo provide income for life.
The concept of an annuity is to save during the annuitants working years and payout over the
annuitants retirement years.
Once an annuity is annualized it pays out as long as the annuitant lives.
Annuitization Point - ANSThe point the annuity pays out to the annuitant.
-Usually at age 65
Deferred Annuity - ANSSave for the future early and pay out at a future date. Usually at age 65
Single Premium (Annuity) - ANSYou pay one time payment for the annuity
What are some key features to remember about annuities? - ANS1. Tax Deferred
2. They are protected from suit
3. They tend to earn a greater return than a savings account of a CD at a bank.
What are two ways an annuity is paid out? - ANSImmediate and Deferred
When does an immediate annuity payout? - ANSOne payment interval from the date of
purchase.
Meaning if you buy an annuity today you will have to wait 30 days (one month) to receive the
first monthly payment
What are six different annuity payout options? - ANS1. Straight Life Income
