| Term | Definition |
|---|
| Straight-Life Annuity | also known as a pure annuity |
| Straight-Life Annuity | you cannot outlive it |
| Straight-Life Annuity | has the highest payouts |
| Straight-Life Annuity | payments stop upon annuitant's death |
| Straight-Life Annuity | very few people choose this option |
| Straight-Life Annuity | the insurance company likes this one the most |
| Straight-Life Annuity | the insurance company is betting that they may only pay for a short period of time based on your lifespan |
| Life with Period Certain Annuity | guarantees a lifetime income even if he or she lives past his or her life expectancy |
| Life with Period Certain Annuity | guarantees a minimum number of installments (payments) to annuitant or beneficiary |
| Life with Period Certain Annuity and Installment Certain Annuity | What 2 forms of payments are more risk to the insurance company? |
| Installment Certain Annuity | guarantees payments to the annuitant or beneficiary for a fixed period of time |
| Installment Certain Annuity | does not guarantee lifetime income to the annuitant |
| Joint and Survivor Annuity | payments are based on the life expectancies of 2 annuitants |
| Joint and Survivor Annuity | there may be reduced benefit for the surviving annuitant |
| Joint and Survivor Annuity | lower payment than any of the other choices |
Combine with other sets
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