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14. All of the following are common modal annuitization payout options EXCEPT:

14. All of the following are common modal annuitization payout options EXCEPT:

a. lump-sum

b. monthly

c. quarterly

d. annually


15. What is the process of converting an annuity's accumulated value into a periodic income stream?

a. commutation

b. annuitization

c. dollar averaging

d. laddering


16. Troy purchased a deferred annuity for $ 100,000, naming himself and his wife as joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the contract had grown to $ 235,000, and Troy decided to annuitize under a joint and survivor life payout. He and his wife had received income totaling $ 50,000 when Troy died. How much will daughter Trudy receive at Troy's death?

a. $ 0

b. $ 100,000

c. $ 135,000

d. $ 180,000


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Answer #1
Q 14) All of the following are common modal annuitization payout options except : option a. lump sum
Q 15) What is the process of converting an annuity's accumulated value into periodic income stream : option b. annuitization
Q 16) Troy purchase a differed annuity for $100,000 naming himself and his wife as joint annuitants and his daughter, Trudy, as beneficiary. Ten years later, the contract had grown to $235,000, and Troy decided to annuitize under a joint and survivor life payout. He and his wife had received income totaling $50,000. How much will daughter Trudy receive at Troy's death      : option b. $100,000
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Answer #2

payout for the duration of joint annuitants’ lives—An annuity income stream can be based on two lives. Called a joint and survivor income option, this approach pays an income stream aslong as either of the two annuitants is alive. In other words, when the first annuitant dies, income payments continue to the surviving annuitant until the survivor’s death. The amount of income that is paid after the death of the first annuitant is normally specified as some portion of the original income stream, such as one-half, two-thirds, or 100 percent.


So Troys wife would continue to get payments, the daughter gets 0. 

The answer to 16 above me is incorrect. 

source: https://www.webce.com/pdf/4-Hr-Annuity-Suitability_Best_Interest_Standard_V2.pdf
answered by: Dave
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Answer #3

ANSWERS :


14. a. lump-sum


Lump-sum is one time payment and therefore not an annuity. Monthly, quarterly and annual are annuity.


15. b. Annuitization .


Periodic income stream is annuity of a lump-sum value of accumulated annuity of deposits. This method is usually used for retirement planning.


16. a. $0 


Troy died in the payout phase, so, beneficiary Trudy, will not get anything as per rules. Also, there is no specific clause in the contract otherwise.




answered by: Tulsiram Garg
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