« previous next »

Author Question: Cassie, age 62, paid a life insurer 100,000 in exchange for a life annuity. If Cassie dies before ... (Read 63 times)

Coya19@aol.com

  • Hero Member
  • *****
  • Posts: 601
on: Jul 11, 2018
Cassie, age 62, paid a life insurer 100,000 in exchange for a life annuity. If Cassie dies before receiving 120 monthly payments from the insurer, the remaining payments will be made to a beneficiary.
 
  If Cassie dies after receiving 120 payments, no additional payments are made by the insurer. The annuity option Cassie selected it
  A) life annuity, no refund.
  B) life annuity with period certain.
  C) installment refund annuity.
  D) cash refund annuity.

Question 2

Brad funded a life annuity through installment payments. At age 60, he decided to elect an annuity settlement option and to begin to receive payments.
 
  Which of the following annuity payout options will provide Brad with the highest monthly income?
  A) life annuity (no refund)
  B) life income with payments guaranteed for 5 years
  C) life income with payments guaranteed for 10 years
  D) installment refund annuity


chreslie

  • Sr. Member
  • ****
  • Posts: 307
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: B

Answer to Question 2

Answer: A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Gas exchange across body surfaces. Gas exchange across body surfaces.
The Scale of Life 2 The Scale of Life 2
Jan de Heem, Still Life with Lobster. Jan de Heem, Still Life with Lobster.
Stereotypes, which play such a profound role in social life, are a basic area of sociological ... Stereotypes, which play such a profound role in social life, are a basic area of sociological ...
How to calculate annuity when compounded quarterly (Part 2) How to calculate annuity when compounded quarterly (Part 2)
First Day of My Life First Day of My Life
Video: Smoking Cessation

For a complete list of videos, visit our video library