Annuites

1. Longevity Annuity (Longevity Insurance)

1.1. is a single-premium deferred annuity that begins paying benefits only at an advanced age, such as age 80 or 85.

1.2. characteristics : 1- lowcost annuities because there are no cash values or death benefits in the policy 2-some insurers offer optional features that provide death benefits, inflation protection, or the option of starting payments sooner, but adding these options substantially reduces the annual income the policy would pay at age 85.

2. Variable annuity

2.1. pays a lifetime income, but the income payments vary depending on the investment experience

2.2. characteristcs 1--Premiums are invested in a portfolio of common stocks or other investments that presumably will increase in value during a period of inflation 2--The premiums are used to purchase accumulation units during the period prior to retirement, and the value of each accumulation unit varies depending on common stock prices.

3. Equity-indexed annuity

3.1. is a fixed, deferred annuity that allows the annuity owner to participate in the growth of the stock market

3.2. characteristics :

3.2.1. offers the guarantees of a fixed annuity and limited participation in stock market gains. 2-- provides downside protection against the loss of principal and prior interest earnings if the annuity is held to term 3-- The value of the annuity is linked to the performance of a specific market index

4. Fixed immediate annuity

4.1. it pays periodic income pay-ments that are guaranteed and fixed in amount; the first payment is due one payment interval from the data of purchase

4.2. Characteristics 1-Lump-sum or periodic contributions 2-No risk to client. Insurance company assumes all risk 3-Guaranteed interest 4-Predictable, simple 5-Guaranteed retirement income

5. Deferred annuity

5.1. A deferred annuityprovides periodic income payments at some future date.

5.2. typas : 1- single-premium deferred annuity is purchased with a lump sum, but income is deferred until some future date. 2-A flexible-premium annuity allows the annuity owner to vary the premium payments; 3- Alongevity annuity (longevity insurance)is a single-premium deferred annuity that begins paying ben-efits only at an advanced age, such as age 85.

6. joint life annuity

6.1. is an annuity written on the lives of two or more people, such as husband and wife, or brother and sister.

6.2. characteristics :

6.2.1. 1-- the income payments terminate when the death of the first covered person dies. 2--the annuity payments continue until the last annuitant dies. 3--Some contracts pay the full amount of the original income payments until the last survivor dies.