#1
What is an annuity?
A series of payments made at regular intervals
ExplanationRegular payments made over time.
#2
What does 'premium' refer to in insurance?
The amount of money paid for coverage
ExplanationCost of insurance coverage.
#3
What is the purpose of a death benefit in life insurance?
To provide financial protection to beneficiaries upon the death of the insured
ExplanationFinancial protection for beneficiaries upon death.
#4
What is a rider in insurance?
An amendment or addition to an insurance policy that modifies its terms
ExplanationModification or addition to insurance policy terms.
#5
What is the purpose of a beneficiary designation in insurance?
To specify who receives the policy benefits upon the insured's death
ExplanationSpecification of policy benefits recipient.
#6
What is the purpose of an insurance deductible?
To reduce the insured's financial responsibility in a claim
ExplanationReduction of financial responsibility in a claim.
#7
What is the difference between term life insurance and whole life insurance?
Term life insurance has no expiration date, while whole life insurance does.
ExplanationTerm life has no expiration, whole life does.
#8
What is an immediate annuity?
An annuity that pays out immediately after it is purchased
ExplanationAnnuity with immediate payouts post-purchase.
#9
What is the surrender value of an insurance policy?
The amount of cash value available to the policyholder if they terminate the policy before maturity
ExplanationCash value upon premature policy termination.
#10
What is an annuity's 'accumulation phase'?
The period when the annuity's cash value grows through contributions and investment returns
ExplanationPhase of annuity growth through contributions and returns.
#11
What is a joint-life annuity?
An annuity that provides income for two or more beneficiaries
ExplanationAnnuity providing income for multiple beneficiaries.
#12
What is the difference between a fixed annuity and a variable annuity?
Fixed annuities offer a guaranteed interest rate, while variable annuities do not.
ExplanationGuaranteed vs. variable interest rates in annuities.
#13
What is the 'annuitization phase' in an annuity?
The process of converting the accumulated value of an annuity into a series of periodic payments
ExplanationConversion of annuity value to periodic payments.