17. Lila invested $10,000 in one of Long Life Insurance Company's annuity contracts. When issued, the contract was paying a 5 percent rate of return. Two years later, Long Life increased this rate to 7 percent. Underlying Lila's contract is a 3 percent rate of return, guaranteed for the life of the contract. What kind of annuity does Lila own?
a. a fixed immediate annuity
b. a variable immediate annuity
c. a fixed deferred annuity
d. a variable deferred annuity
19. Long Life Insurance Company offers a fixed annuity that includes a standard death benefit provision, a seven-year surrender charge period, the option to annuitize at the annuitant's age 65, and a free withdrawal period. What is the length of the free withdrawal period?
a. until the contract owner dies
b. until the annuitant's age 65
c. ten years
d. seven years
20. What is the duration of an annuity's free withdrawal period?
a. It is the same as its surrender charge period.
b. It is based on the amount of the initial premium.
c. It is longer for nonqualified contracts than for qualified contracts.
d. It is left to the discretion of the contract owner.