Which of the following is not included in an annuity?

Annuity Contracts: Features and Exclusions

An annuity is a financial contract that provides regular payments to an individual or group for a specified period or for life. These contracts offer a means of financial security by guaranteeing a steady stream of income during retirement or other life events.

Typical Features of Annuity Contracts

Annuity contracts typically include several key features:

• Regular payments: Annuities provide regular payments to the annuitant (the person receiving the payments) at predetermined intervals, such as monthly, quarterly, or annually.
• Guaranteed income: The annuity contract guarantees that the annuitant will receive payments for the specified period or for life, regardless of market fluctuations or other factors.
• Investment options: Many annuities offer a range of investment options, allowing the annuitant to tailor the contract to their financial goals and risk tolerance.
• Tax benefits: Annuities can offer tax-advantaged growth, depending on the type of annuity and the annuitant’s tax situation.

Exclusions from Annuity Contracts

While annuities provide comprehensive financial protection, they do not typically include all aspects of financial security. One notable exclusion is:

• Accidental death and dismemberment (AD&D) riders: AD&D riders are separate insurance products that provide coverage in the event of accidental death or dismemberment. These riders are often purchased separately from annuity contracts and offer additional financial protection beyond the scope of an annuity.

In summary, an annuity contract typically covers features such as regular payments, guaranteed income, investment options, and tax benefits. However, it does not include accidental death and dismemberment coverage, which is often purchased separately as an additional layer of financial security.