lifeins ch.6 - ANNUITIES If the annuitant dies during the...

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ANNUITIES If the annuitant dies during the accumulation period, the beneficiary receives benefits from the annuity: either the amount paid into the plan or the cash value - whichever is greater. If a deferred annuity is surrendered prematurely, a surrender charge is imposed. The charge is generally a percentage that reduces over time until it ends. In times of inflation, benefits have less purchasing power. Since costs increase as a result of inflation, more money is required to purchase something that had previously cost less. Likewise, in the event of deflation, the purchasing power of benefits increases. The other options listed would affect the amount of money available to the annuity owner, but they would not actually affect the purchasing power of benefits paid. The annuity owner dies during the accumulation period of his annuity. The cash value of his annuity exceeds the premiums he paid. There is no named beneficiary. Which of the following is true? The cash value will be paid to the annuitant's estate. With fixed annuities, the interest paid by a company is contingent upon the performance of conservative
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This note was uploaded on 11/22/2010 for the course LIFE INSUR 245 taught by Professor Knowles during the Spring '10 term at El Centro College.

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lifeins ch.6 - ANNUITIES If the annuitant dies during the...

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