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RMI 3011 Exam 3 FSU RMI 3011 Florida State University -Question and answers 100% correct

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RMI 3011 Exam 3 FSU RMI 3011 Florida State University -Question and answers 100% correct Annuity - correct answer *Periodic payment that continues for a fixed period or the rest of a designated life(s) *An Annuity is: - correct answer The opposite of life insurance Annuitant - correct a...

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  • November 30, 2024
  • 37
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • rmi 3011 exam 3 fsu
  • rmi 3011 exam 3 fsu question and answers 100 corr
  • rmi 3011 exam 3 fsu rmi 3011 florida state univers

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RMI 3011 Exam 3 FSU Question and
answers 100% correct
Annuity - correct answer ✔*Periodic payment that continues for a fixed
period or the rest of a designated life(s)


*An Annuity is: - correct answer ✔The opposite of life insurance


Annuitant - correct answer ✔The person who receives the payments


Major Types of Annuities (3) - correct answer ✔1. Fixed Annuity
2. Variable Annuity
3. Equity-Indexed Annuity


Fixed Annuity - correct answer ✔Pays periodic income payments that are
both guaranteed and fixed in amt. Little or no protection from inflation.


*Accumulation Period - correct answer ✔Period before retirement, in which
premiums gain interest


Guaranteed Rate - correct answer ✔Minimum interest rate that will be given
to a fixed annuity


Current Rate - correct answer ✔Based on current market conditions,
guaranteed for limited period


Liquidation Period - correct answer ✔Period that funds are paid out, or
annuitized

,*The Downside of a Fixed Annuity is: - correct answer ✔Little or no
protection against inflation


Immediate Annuity - correct answer ✔One where the first payment is due
one payment interval from the date of purchase


Deferred Annuity - correct answer ✔Provides income payments at some
future date


Single-Premium Deferred Annuity - correct answer ✔Deferred annuity
purchase with a lump sum


Flexible-Premium Annuity - correct answer ✔Allows the owner to vary the
premium payments


Most Annuities are Not: - correct answer ✔Annuitized


Under the Cash Option: - correct answer ✔Funds can be withdrawn in a
lump sum or in installments


Life Annuity (No Refund) Option - correct answer ✔Provides a life income to
the annuitant only while the annuitant remains alive


Life Annuity with Guaranteed Payments - correct answer ✔Pays a life
income to the annuitant with a certain number of guaranteed payments

,Installment Refund Option - correct answer ✔Pays a life income to the
annuitant; after the annuitant's death, payments continue to a beneficiary until
they equal the purchase price


Cash Refund Option - correct answer ✔Is similar to the Installment Refund
Option, but pays the beneficiary a lump sum


Joint-and-Survivor Annuity - correct answer ✔Pays benefits based on the
lives of two or more annuitants


Inflation-Indexed Annuity Option - correct answer ✔Provides periodic
payments that are adjusted for inflation


Variable Annuity - correct answer ✔Pays a lifetime income, but the income
payments vary depending on common stock prices


Accumulation Units - correct answer ✔Premiums are used to purchase these
during period prior to retirement


Annuity Units - correct answer ✔At retirement, the accumulation units are
converted into these


An Annuity Unit is: - correct answer ✔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


*Longevity Insurance - correct answer ✔A low-cost annuity because there
are no cash values or death benefits in the policy

, Exclusion Ratio - correct answer ✔Investment in the contract / expected
return


IRA - correct answer ✔Individual retirement account


*Traditional IRA - correct answer ✔Allows workers to take a tax deduction for
part or all of their IRA contributions


Nondeductible IRA - correct answer ✔Taxpayers with incomes that exceed
the phase-out limits can contribute to this


Spousal IRA - correct answer ✔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


*IRA Rollover - correct answer ✔Tax-free distribution of cash or other
property from one retirement plan, which is deposited into another retirement
plan


Roth IRA - correct answer ✔Another type of IRA that provides substantial tax
advantages


Fixed Annuities include: - correct answer ✔1. Accumulation Period
2. Guaranteed Rate
3. Current Rate
4. Liquidation Period


Time periods Fixed Annuities could be paid include: - correct answer ✔1.
Immediate Annuity

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