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:
Determining how the premiums are invested
Stability of income payments after retirement
Death benefits if the annuitant dies before retirement
An equity-indexed annuity and a variable annuity are both similar and different in many respects.
Explain the major similarities between an equity-indexed annuity and a variable annuity.
Identify the major differences between an equity-indexed annuity and a variable annuity.
Mario, age 65, purchased an immediate annuity for $120,000 that pays a lifetime monthly ...