Gujarat Tet-1 Exam Provisional Answer Key Declaired

Gujarat Tet-1 Exam Provisional Answer Key Declaired


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Tet-1 Exam Provisional Answer Key Declaired

An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits on a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time.


An annuity that provides for payments for the rest of a person's lifetime is a life annuity.

Payments of an annuity-immediate payment are made at the end of the payment periods so that the interest accrues between the issue of the annuity and the first payment. Payments of an annuity-due are made at the beginning of the payment periods so payment is made immediately on issue.


Anuities that provide payments that will be paid over a period known in advance are annuities certain or guaranteed annuities. Annuities paid only under certain circumstances are contingent annuities. A common example is a life annuity, which is paid over the remaining lifetime of the annuity. Certain and life annuities are guaranteed to be paid for a number of years and then become contingent on the annuitant being alive.


Fixed annuities - These are annuities with fixed payments. If provided by an insurance company, the company guarantees a fixed return on the initial investment. Fixed annuities are not regulated by the Securities and Exchange Commission.


Variable annuities - Registered products that are regulated by SEC in the United States of America. They allow direct investment into various funds that are specifically created for Variable annuities. Typically, the insurance company guarantees a certain death benefit or lifetime withdrawal benefits.

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