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Insurance & Risk Management
12. Chapter 14: Annuities and Individual Retirement Accounts/Types of annuities
12. Chapter 14: Annuities and Individual Retirement Accounts Illustration
Syllabus Slides

Types of annuities

01.Core Concepts

An installment refund option pays a life income to the annuitant; after the annuitant’s death, payments continue to a beneficiary until they equal the purchase price A cash refund option is similar, but pays the beneficiary a lump sum An inflation-indexed annuity option provides periodic payments that are adjusted for inflation Some insurers now make available riders that allow annuitants to make a partial cash withdrawal ‹#›