Annuities
In an annuity contract, whose life measures the income payments?
Answer and explanation
Answer: D. The annuitant is the measuring life for a life-contingent payout, which is why mortality enters the calculation. The owner holds the contractual rights and may be a different person, and the beneficiary receives what remains at death.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, owner, annuitant, and beneficiary
More annuities questions
- A fixed annuity states a minimum rate and a current rate. What is the difference?
- A married couple wants annuity income to continue while either of them lives. Which option fits?
- A worker buys an annuity at age 45 and plans to begin income at age 65 after years of tax-deferred accumulation. Which classification best fits?
- An annuitant wants income for life but wants a minimum amount to reach heirs if she dies early. Which option fits?
- An annuity is owned by a parent and measured on a child's life. Who may surrender the contract?
- An annuity owner dies during the accumulation period. What ordinarily happens?
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