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Annuity – WebCE Questions and Answers Rated A+ with Latest Updates

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Annuity – WebCE Questions and Answers Rated A+ with Latest updates Annuitization is -✔✔ Accumulated values are converted into a stream of periodic income payments. How often can payments ... of annuities be paid out? -✔✔ A specified term of years, for life, or a combination of the two. What is the reason (how has a consumer's priorities and needs shifted) that annuities are well suited for late-life retirement planning? -✔✔ When a consumer priorities and needs typically shift from asset accumulation to income distribution What is the start date range for deferred income annuities? -✔✔ Anywhere from 13 months to 40 years in the future. What is the age that Deferred Income Annuities' income start date cannot extend past? -✔✔ 85 years old. What are Surrender Charges? -✔✔ Fees the insurer assess for early withdrawals or contract surrenders. What is a Withdrawal Fee? -✔✔ when less than the full contract value is taken. What are the two approaches for insurers to determine the surrender charge? What are other ways? -✔✔ 1) Account Value Method 2) Premium Deposit Method 3) Market Value Adjustments 4) Premium Tax What is the Premium Deposit Method of determining the surrender charge? -✔✔ The charge on the amount of the contract's invested premium, applying a percentage that usually declines annually over the surrender charge period. What is the Account Value Method of determining the surrender charge? -✔✔ Assess a surrender charge equal to some percentage of the contract's accumulated value. What is Premium Tax in relation to the annuity? -✔✔ A number of states impose a tax on annuity premiums. What does the Mortality and Expense (M&E) charge? -✔✔ Assessed against the values of the separate subaccounts and is deducted before accumulation unit values are calculated. It helps ensure that the insurer can meet its contractual obligations for annualized income payments and a minimum death benefit. The cost of a variable annuity's death benefit and annuity charge plus related insurer costs (such as agent commissions and overhead) [Show More]

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