Answer:
So, purchasing an immediate annuity with the face amount at death or with cash value at surrender suggests that it is a form of life insurance policy where the annuity feature provides an immediate income stream to the policyholder or beneficiaries.
Step-by-step explanation:
If an immediate annuity is purchased with the face amount at death or with cash value at surrender, it would typically be considered a life insurance policy.
Step-by-step explanation:
An immediate annuity is a financial product that provides a steady stream of income payments to an individual, starting immediately after it is purchased. The annuity can be purchased with a lump sum of money and then converted into a series of regular payments for a specific period or for the lifetime of the annuitant.
However, when an immediate annuity is purchased with the face amount at death or with cash value at surrender, it indicates that the annuity is structured as a life insurance policy. These options are commonly associated with life insurance policies, specifically whole life or universal life insurance.
In a typical life insurance policy, the face amount at death refers to the predetermined death benefit that is paid out to the beneficiaries upon the death of the insured. The cash value at surrender represents the accumulated value of the policy, which can be accessed by the policyholder if they choose to surrender or cancel the policy before the insured's death.