Which of the Following Is a Characteristic of a Longevity

question 50

Multiple Choice

Which of the following is a characteristic of a longevity annuity (longevity insurance) ?

• A) payment of the face value of the policy at age 100
• B) forfeiture of the purchase price if the annuitant dies during the deferral period
• C) cash value can be borrowed or recouped through a nonforfeiture option
• D) high-cost annuity compared to other life annuities

---

Definitions:

Interest Annually

The amount of interest earned or paid over a one-year period.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, factoring in its current market price, face value, interest rates, and time to maturity.

Par Value

The nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.

Semi-Annually

Semi-annually refers to an event or action occurring twice a year, typically every six months.