What Is True About Variable Annuities? a variable annuity guarantees an earnings rate of return. a variable annuity does not guarantee an earnings rate of return. a variable annuity guarantees payments for life. a variable annuity does not guarantee payments for life. What is the point of a variable annuity? A variable annuity is a
Which Of The Following Is A Characteristic Of A Variable Annuity Quizlet? A typical variable annuity offers three basic features not commonly found in mutual funds: tax-deferred treatment of earnings; a death benefit; and. annuity payout options that can provide guaranteed income for life. Which of the following is characteristic of a variable annuity? A
What Is An Indexed Variable Annuity? Like all investments, index annuities have their disadvantages. … Administration Fees Like mutual funds, some index annuities charge a 1-3% annual management fee. Withdrawal Fees Withdrawals exceeding the annual allowance incur an insurance company penalty. Vesting Schedule Earnings diminish when withdrawn early. What are the downside of indexed annuities?
What Are The 3 Types Of Annuities? The main types of annuities are fixed annuities, fixed indexed annuities and variable annuities. Can you lose all your money in an annuity? When you purchase in a fixed annuity, the insurance carries guarantees that you cannot lose either your principal (the money that you put into the
What Happens During The Accumulation Phase Of An Annuity? During the accumulation period, the annuity earns interest and, in cases of flexible premium annuities, the annuity owner adds money in the form of additional premium payments. During this time, the value of the annuity contract grows. Annuity withdrawals are limited during the accumulation phase. What
What Is A Variable Annuity Contract? A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic pay- ments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of
What Is The Example Of Simple Annuity? For example, most car leases are simple annuities due, where payments are made monthly and interest rates are compounded monthly. However, the day you sign the lease is when you must make your first monthly payment. What is simple annuity? Simple Annuities Due are annuities where payments are
What Does Monthly Straight Life Annuity Mean? What does monthly straight life annuity mean? A straight life annuity, sometimes called a straight life policy, is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed