Application Questions

  1. Although both fixed and variable annuities can provide lifetime income to annuitants, they differ in important ways. Compare and contrast (1) a fixed annuity with (2) a variable annuity with respect to each of the following:

    1. Determining how the premiums are invested

    2. Stability of income payments after retirement

    3. Death benefits if the annuitant dies before retirement

  2. An equity-indexed annuity and a variable annuity are both similar and different in many respects.

    1. Explain the major similarities between an equity-indexed annuity and a variable annuity.

    2. Identify the major differences between an equity-indexed annuity and a variable annuity.

  3. Mario, age 65, purchased an immediate annuity for $120,000 that pays a lifetime monthly ...

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