Which of the following statements is (are) true about a longevity annuity (longevity insurance)?
I. If the annuitant dies during the deferral period, the purchase price of the annuity is forfeited.
II. Longevity insurance is an example of an immediate annuity.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: A
Business
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a. Allowance method is used for tax purposes. b. Estimates are used. c. Determining worthless accounts under direct write-off method is difficult to do. d. Improved matching of bad debt expense with revenue.
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Which of the following would not be included in a cash budget?
A) depreciation B) cash receipts C) dividend payments D) income tax payments
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