2. The total premium is $200000. The higher premium matches the income base value of the FIA.
3. The payout schedule is based on the ”life with cash refund” option that matches the FIA’s death benefit provision.
c. Data For Benefit Comparison B
Table 2 outlines the data for the income benefits of the SPIA and the FIA.
d. Findings For Benefit Comparison B
1. The annual payout from the FIA is $548 higher than the immediate annuity.
2. The capital outlay for the FIA is much lower than the immediate annuity, which is $123,000 compared to $200,000.
3. Accordingly, for the 35-year payout duration of the immediate annuity, the compound rate of return is 2.13 percent with a $200,000 initial investment.