FINC475 EXAM 4 QUESTIONS AND CORRECT VERIFIED
ANSWERS ,A COMPLETE SOLUTION THAT COVERS
2024/2025 BEST TOP RANKED A+ FOR SUCCESS
APPROVED
annuity - CORRECT ANSWERS a periodic payment that continues for a fixed period or for the
duration of a designated life or lives
Annuitant - CORRECT ANSWERS The person who receives the payments
The fundamental purpose of an annuity - CORRECT ANSWERS to provide a lifetime income
that cannot be outlived.
Annuity payments consist of three sources: - CORRECT ANSWERS -Premium payments,
-Interest earnings, and
-Unliquidated principal of annuitants who die early.
liquidation period - CORRECT ANSWERS the period in which funds are paid out, or
annuitized
•immediate annuity - CORRECT ANSWERS pays periodic income payments that are
guaranteed and fixed in amount. The first payment starts one payment interval from the
date of purchase.
single-premium immediate annuity - CORRECT ANSWERS an annuity purchased with a lump
sum
deferred annuity - CORRECT ANSWERS provides periodic income payments at some future
date
flexible-premium annuity - CORRECT ANSWERS allows the owner to vary the premium
payments
longevity annuity - CORRECT ANSWERS begins paying benefits only at an advanced age,
such as age 85
, FINC475 EXAM 4 QUESTIONS AND CORRECT VERIFIED
ANSWERS ,A COMPLETE SOLUTION THAT COVERS
2024/2025 BEST TOP RANKED A+ FOR SUCCESS
joint-and-survivor annuity - CORRECT ANSWERS pays benefits based on the lives of two or
more annuitants. The annuity income is paid until the last annuitant dies
life annuity (no refund) option - CORRECT ANSWERS provides a life income to the annuitant
only while the annuitant remains alive. BETTER PAYMENT
life annuity with period certain - CORRECT ANSWERS pays a life income to the annuitant
with a certain number of guaranteed payments
Variable annuity - CORRECT ANSWERS pays a lifetime income, but the income payments
vary depending on the investment performance of the investment account
accumulation units - CORRECT ANSWERS Premiums are used to purchase _______________
during the period prior to retirement.
fixed-indexed annuity - CORRECT ANSWERS a deferred annuity that allows the owner
indirect participation in the growth of an index fund and provides downside protection
against the loss of principal and prior interest earnings
participation rate - CORRECT ANSWERS the percent of increase in the stock index that is
credited to the contract
Longevity annuities - CORRECT ANSWERS provide protection against the risk of depleting
your financial assets at an advanced age
•Advantages to longevity annuities include:
Benefits kick in when other financial assets are likely to be exhausted - CORRECT ANSWERS
Benefits kick in when other financial assets are likely to be exhausted
•Disadvantages to longevity annuities include: - CORRECT ANSWERS -Your heirs will lose
money if you die during the deferral period,
-Once purchased, your funds are locked up, and
ANSWERS ,A COMPLETE SOLUTION THAT COVERS
2024/2025 BEST TOP RANKED A+ FOR SUCCESS
APPROVED
annuity - CORRECT ANSWERS a periodic payment that continues for a fixed period or for the
duration of a designated life or lives
Annuitant - CORRECT ANSWERS The person who receives the payments
The fundamental purpose of an annuity - CORRECT ANSWERS to provide a lifetime income
that cannot be outlived.
Annuity payments consist of three sources: - CORRECT ANSWERS -Premium payments,
-Interest earnings, and
-Unliquidated principal of annuitants who die early.
liquidation period - CORRECT ANSWERS the period in which funds are paid out, or
annuitized
•immediate annuity - CORRECT ANSWERS pays periodic income payments that are
guaranteed and fixed in amount. The first payment starts one payment interval from the
date of purchase.
single-premium immediate annuity - CORRECT ANSWERS an annuity purchased with a lump
sum
deferred annuity - CORRECT ANSWERS provides periodic income payments at some future
date
flexible-premium annuity - CORRECT ANSWERS allows the owner to vary the premium
payments
longevity annuity - CORRECT ANSWERS begins paying benefits only at an advanced age,
such as age 85
, FINC475 EXAM 4 QUESTIONS AND CORRECT VERIFIED
ANSWERS ,A COMPLETE SOLUTION THAT COVERS
2024/2025 BEST TOP RANKED A+ FOR SUCCESS
joint-and-survivor annuity - CORRECT ANSWERS pays benefits based on the lives of two or
more annuitants. The annuity income is paid until the last annuitant dies
life annuity (no refund) option - CORRECT ANSWERS provides a life income to the annuitant
only while the annuitant remains alive. BETTER PAYMENT
life annuity with period certain - CORRECT ANSWERS pays a life income to the annuitant
with a certain number of guaranteed payments
Variable annuity - CORRECT ANSWERS pays a lifetime income, but the income payments
vary depending on the investment performance of the investment account
accumulation units - CORRECT ANSWERS Premiums are used to purchase _______________
during the period prior to retirement.
fixed-indexed annuity - CORRECT ANSWERS a deferred annuity that allows the owner
indirect participation in the growth of an index fund and provides downside protection
against the loss of principal and prior interest earnings
participation rate - CORRECT ANSWERS the percent of increase in the stock index that is
credited to the contract
Longevity annuities - CORRECT ANSWERS provide protection against the risk of depleting
your financial assets at an advanced age
•Advantages to longevity annuities include:
Benefits kick in when other financial assets are likely to be exhausted - CORRECT ANSWERS
Benefits kick in when other financial assets are likely to be exhausted
•Disadvantages to longevity annuities include: - CORRECT ANSWERS -Your heirs will lose
money if you die during the deferral period,
-Once purchased, your funds are locked up, and
