Question

1.

I am offered by life insurance companies and financial firms. The customer pays periodic premiums or a lump sum in return for a payment each year upon retirement. Who am I?

a.a defined contribution plan

b.a defined benefit plan

c.an annuity

d.Social Security

e.long-term care insurance

2. Which of the following does not lead to invalidating the terms of an existing will?

a.a legal codicil made by the person that expressly puts forth changes.

b.the person not having witnesses when signing his/her will.

c.definitive evidence that the person was not of sound mind when making his/her will.

d.a divorce recognized by law.

e.construction of a new will that supersedes the previous will.

Answer 1

Answer:

1.c. an annuity

• Annuities are financial products that offered a guaranteed income stream,used primarily by retirees.
• Annuities exit first in an accumulation phase, where by investors fund the product with either a lump-sum or periodic payment.
• Once the annuitization Phase has been reached,the products begins paying out to the annitant for either a fixed period or for the annuitants remaining Life time.
• Annuties can be structured into different kinds of instruments-Fixed, variable, immediate,differed income,that give investors flexibility.

2. c.definitive evidence that the person was not of sound mind when making his/her will.

to make a will,a person must be of sound mind,in law this is called having the mental capacity to make a will..,so the option 'c' does not lead to invalidating the terms of an existing will.