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Determining how the premiums are invested

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1 Although both immediate and variable annuities can provide lifetime income to annuitants, they differ in important ways. Compare and contrast (1) an immediate annuity with (2) a variable annuity with respect to each of the following:

a. Determining how the premiums are invested

b. Stability of income payments after retirement

c. Death benefits if the annuitant dies before retirement

A fixed indexed annuity and a variable annuity are both similar and different in many respects.

a. Explain the major similarities between an fixed indexed annuity and a variable annuity.

b. Identify the major differences between a fixed indexed annuity and a variable annuity.

Reference no: EM133113013

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