Different types of annuities

Question

Accepted Answer

An annuity is a financial product that provides a series of payments at regular intervals.

Fixed annuity: provides a fixed payment amount for a specific period of time
Variable annuity: payment amount varies based on the performance of underlying investments
Immediate annuity: payments begin immediately after purchase
Deferred annuity: payments begin at a future date
Indexed annuity: payment amount is tied to a stock market index
Lifetime annuity: payments continue for the life of the annuitant
Joint and survivor annuity: payments continue to a surviving spouse or beneficiary
Single premium annuity: purchased with a lump sum payment
Period certain annuity: payments are made for a specific period of time

Top Aon Actuarial Analyst interview questions & answers