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6 Cards in this Set
- Front
- Back
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Joint and last survivor annuity
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an annuity option typically chosen by a husband and wife, where the annuity payment continues through the lives of both spouses.
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Life annuity
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an annuity option where payments are made to the annuitant for his or her entire life; when that person dies, payments stop.
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Life annuity with period certain
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an annuity option where payments are made to the annuitant for his or her entire life; however after the annuity begins, if the person dies before a fixed amount of time has passed (usually, 10 years - so there is a 10 year "period certain"), the annuity will continue to make payments to a designated beneficiary through that fixed period.
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Unit refund life annuity
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an annuity option where, if the annuitant dies before receiving the full investment value of the annuity contract, the remainder is refunded to his or her estate.
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Fixed annuity
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The insurance company collects a premium from the purchaser and invests it in its general account. The performance of the investments held in the general account does not affect the amount of the annuity promised to the purchaser. Thus, the insurance company bears the investment risk
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Money purchase retirement plans:
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require mandatory annual employer contributions limited to a maximum of 25% of income, capped at a maximum of $53,000
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