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LOMA 281 Module 2 Lesson 3 well answered to pass
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LOMA 281 Module 2 Lesson 3 well answered to pass
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LOMA 281 Module 2 Lesson 3Annuity - correct answer ✔✔insurance against the risk of outliving one's financial resources
annuity contract - correct answer ✔✔A contract under which an insurer promises to make a series of
periodic payments to a named individual in exchange for a premium or a series of premiums.
contract owner - correct answer ✔✔The person or other entity who owns and exercises all the rights
and privileges of an annuity contract.
annuitant - correct answer ✔✔The person whose lifetime is used to determine the amount of benefits
payable under an annuity contract. If not the contract owner, they are not a party to the contract.
payee - correct answer ✔✔The person or entity who receives the periodic income payments according
to the terms of an annuity contract. If not the contract owner, they are not a party to the contract.
beneficiary - correct answer ✔✔The party designated to receive the policy proceeds following the death
of the insured. Also known as first beneficiary.
accumulation value - correct answer ✔✔equals the premiums paid, plus investment earnings, less
withdrawals or fees.
fixed annuity - correct answer ✔✔An annuity contract under which the insurer guarantees the minimum
interest rate that will be applied to the annuity's accumulation value during the accumulation period and
the minimum amount of the periodic income payments that will be made during the payout period.
variable annuity - correct answer ✔✔An annuity under which the amount of the accumulation value and
the amount of the periodic income payments fluctuate in accordance with the performance of one or
more specified fund options. Contract owner assumes most or all of the risk.
hybrid annuities - correct answer ✔✔combine features of fixed annuities and variable annuities.
, fixed-indexed annuity - correct answer ✔✔offers principal and interest rate guarantees, as well as the
possibility of additional earnings based on changes in a published index, such as the Standard & Poor's
500 Composite Stock Price Index (the S&P 500)
market value adjusted annuity - correct answer ✔✔An annuity that offers multiple guarantee periods
and multiple fixed interest rates.
deferred annuity - correct answer ✔✔pay a death benefit to a named beneficiary if the contract owner
dies before annuity payments begin, the greater of the accumulated cash value or premiums paid less
withdrawals.
guaranteed minimum death benefit - correct answer ✔✔A variable annuity contract feature which
guarantees that, if the annuitant dies before periodic income payments begin, the beneficiary will
receive at least a stated amount, regardless of the contract's accumulation value at that time.
guaranteed minimum income benefit - correct answer ✔✔A variable annuity contract feature that
guarantees a minimum protected value that can be converted into periodic income payment regardless
of the annuity's investment performance. The contract must remain in force for a specified period of
time.
guaranteed minimum withdrawal benefit - correct answer ✔✔A variable annuity contract feature which
guarantees that up to a certain percentage of the amount paid into the contract will be available for
withdrawals annually during the accumulation period, even if subaccount investments perform poorly.
guaranteed lifetime withdrawal benefit - correct answer ✔✔A variable annuity contract feature that
guarantees that up to a certain percentage of the amount paid into the contract will be available for
withdrawals annually throughout the life of the payee, even if subaccount investments perform poorly.
guaranteed minimum accumulation benefit - correct answer ✔✔A variable annuity contract feature
which guarantees that the accumulation value will be at least a minimum amount if the contract remains
in force for a specified period of time—typically 7 to 10 years.
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