Riskier investment than fixed annuities

Assignment Help Financial Management

Reference no: EM131949313

True or false?

1. All annuity contracts have a feature that protects the annuitant from inflation.

2. Variable annuities are a riskier investment than fixed annuities.

3. The goal of most annuities is to provide a steady stream of income during retirement for a specified period of time or for the remainder of one or more lives.

4. Immediate annuity contracts will only pay the annuitant. There are no exceptions. This means that upon the annuitant’s death the contract is terminated and the insurance company that issued the annuity has no more obligations.

5. One feature that all annuity contracts have in common is that the annuitant can never outline the annuity payments.

6. If you are concerned with the risk of outliving your financial resources, then you might consider purchasing an immediate annuity at least in an amount sufficient to cover your basic living expenses.

Reference no: EM131949313

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