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Annuities: Types & Benefits

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Mrs. Sanders is one year from retirement and interested in investing in an annuity. Which annuity fits her needs best and why?

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1. Mr. Murray just graduated from college and landed his dream job. On his first day, he attends orientation, where the human resource representative explains retirement options. Which annuity option should Mr. Murray choose if he has a high risk tolerance?

2. Which answer describes an equity-indexed annuity?

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About This Quiz & Worksheet

Use the quiz and worksheet to determine how much you understand the pros and cons of annuities. The questions on the quiz will test you on what annuities are and the different types available.

Quiz & Worksheet Goals

Use these study tools to:

  • Assess an appropriate annuity for somebody who is a year away from retirement
  • Determine the proper annuity for an individual with a high risk tolerance
  • Describe an equity-indexed annuity
  • Define annuity
  • Understand how risk and return are connected

Skills Practiced

These study skills be practiced:

  • Distinguishing differences - compare and contrast topics from the lesson, such as risk and return
  • Information recall - access the knowledge you've gained regarding an equity-indexed annuity
  • Knowledge application - use your knowledge to answer questions about the pros and cons of annuities

Additional Learning

Utilize the lesson to learn more about this area of financial investments. The lesson is entitled Annuities: Types & Benefits and it will cover the following study points:

  • Understand immediate annuities
  • Explain a deferred annuity
  • Define risk and return
  • Assess the disadvantages of annuities
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