Which of the following is a characteristic of a variable annuity quizlet?
Which of the following is a characteristic of a variable annuity? Variable annuities involve underlying equity investments in a separate account. How does an indexed annuity differ from a fixed annuity? An immediate annuity has a single premium.
What happens when a variable annuity matures?
You can annuitize your contract at maturity. Your monthly income payments are based on the value of your annuity at maturity. Many insurance providers allow you to choose between several different payment options. Your payments are smaller if you choose to convert your annuity into a lifetime income stream.
Do you get your money back at the end of an annuity?
In a lifetime annuity, you get payments until you die, so you may not get all your principal back. The point remains the same, though: Your principal earns a return, and your payments typically include some principal and some profit.
Can you lose money in a fixed annuity?
You can not lose money in Fixed Annuities. Fixed annuities do not participate in any index or market performance but offer a fixed interest rate similar to a CD.
What is the best fixed index annuity?
2019 U.S. Individual Fixed Index Annuity Sales
| Rank | Company name | Indexed |
|---|---|---|
| 1 | Allianz Life | $8,358,718 |
| 2 | Athene | $6,122,393 |
| 3 | AIG Companies | $6,026,956 |
| 4 | Nationwide | $5,455,800 |
What is the downside of fixed index annuities?
Fixed Index Annuity Disadvantages: 10% IRS penalty on withdrawals prior to 59 1/2 years of age. Early withdrawal penalties or surrender charges for large withdrawals prior to maturity or when withdrawing in excess of the 10% annual surrender-free portion.
What is a good rate for a fixed annuity?
3.71%
Do fixed index annuities have fees?
Fixed-indexed annuities often come with fairly high annual fees, either charged directly or built into the structure of the investment return. They can also high commissions.