Financial Markets and Institutions
Financial Markets and Institutions
6th Edition
ISBN: 9780077641825
Author: SAUNDERS
Publisher: Mcgraw-Hill Course Content Delivery
Question
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Chapter 15, Problem 1DYU
Summary Introduction

To discuss: The difference among life insurance contract and an annuity contract

Expert Solution & Answer
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Explanation of Solution

Life insurance contract usually accumulates the funds whereas annuity contract liquidates the accumulated funds.

Life insurance can be taken for both the individual and dependents. Annuity contract is taken for individual’s benefits.

The contract payment is made after the death of the insured whereas the payment in annuity contract is stopped at death.

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