Annuities

Annuity Basics

100

a contract made between you and your insurance company to cover future finances

What is an annuity?

200

Retirement finances

What does an annuity cover?

300

Fixed, Variable, and Indexed

What are the three types of annuities?

400

Lump sum payment

What is a series of payments?

500

substantial surrender charges and tax penalties

What is the penalty for withdrawing money from an annuity early?

Types of Annuities

100

The insurance company agrees that the payment will be made periodically with a specific amount of money in your bank account.

What is the definition of a fixed annuity

200

You choose to invest your purchase payments from a range of investments.

What is the definition of a variable annuity?

300

the insurance company credits you a return that is based on changes in an index

What is the definition of an indexed annuity?

400

S&P Composite Stock Price Index

What is an example of an indexed annuity?

500

type of annuity for a single person

What is fixed annuity?

Pros

100

Tax deferred compunding

What is the most popular type of annuity?

200

Guaranteed income

A fixed annuity contract allows what?

300

tax deferred compounding

What allows you to compound yearly interest earnings free of current tax?

400

Opportunities for growth and principal that may keep up or exceed rates of inflation

What is a pro of a variable annuity?

500

accumulating money to be used in the future

What is a pro of an annuity?

Free for All

100

Most annuities are offered here

What is business firms

200

Something that life insurance requires

What is a phyiscal exam

300

Depends on the investment options you choose.

What is the rate of return and amount of payments you receive

400

the most recommended type of annuity

What is fixed annuity

500

Type of annuity that deals with stock price

What is indexed annuity?