Course Outline Variable Contracts and Retirement Plans
Terms
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- Provides a lifetime retirement income, tax-deferred growth of assets.
- Annuities
- Two types of annuities.
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Fixed
Variable - The annuity that provides a fixed monthly payment for contract term. Minimum rate guaranteed, hedge against inflation, mortality guarantee
- Fixed
- Variable monthly payment, no minimum rate of return guaranted...mortality guarentee
- Variable Annuity
- Methods of purchasing annuities
-
Immediate
Deferred - During the pay in phase of an annutiy the premiums paid are valued as ________ _____.
- Accumulation Units
- The measure used during the payout phase.
- Annuity units
- The annuity payout option (settlement option) that grants the largest monthly payments for the life of the annuitant only.
- Life annuity
- The Payout option (settlement option) that pays for life or a set number of years is.
- Life annuity with period certain.
- the payout option that pays out for the life of the annuitant plus the life of the servivor.
- Joint and survivor life annuity.
- Tax-qualified Annuity plan for employees of public school systems.
- 403(b)
- Tax-qualified annuity plan for employees of private, non-profit organiztions.
- 501(c)(3)
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Has minimum benefit, but no maximum.
- Variable life
- Whole life
- Univeral life - Variable life
-
Has no guarenteed cash value:
Var. life
whole life
Univ. life - Variable life
- _______ life and _______life guarantee cash value to one degree or another.
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Whole life
Universal life - ________ life insurance has a minimum benefit and _______ life insurance has a possible fixed minimum death benefit.
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Whole life
Univeral life - ______ life and ________ life premiums are paid in fixed amounts at fixed dates.
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Variable
Whole - Who qualifies for a IRA?
- Anyone with earned income.
- A special IRA that allows contributions to continue after age 70 1/2 with no withdrawal necessary.
- Roth IRA
- Coverdell Education Savings Accounts and 529 Plans are what type of Plans
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Educational savings plan
and
Qualified State Tuition Programs - Anyone with self-employeed income, sole proprietors or partners and their employees qualify for for this.
- Keogh Plan (HR10)
- In a Keogh plan, _______ amount of funds are _____ at distribution of funds.
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entire
taxed - In a Keogh plan, the _______ amount of funds are _____ at distribution of funds.
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entire
taxed