Annuities

Question 1

Which annuity payout option allows the policy owner to choose predetermined number of benefit payments? Period Certain. Straight life installment refund. Amount certain.

Answer 1

Period Certain.

Question 2

Which of these annuities require premium payments to vary from year to year? Flexible, premium immediate annuity flexible premium deferred annuity, premium deferred annuity fix premium immediate annuity.

Answer 2

Flexible, premium deferred annuity

Question 3

An annuity is primarily used to provide

Answer 3

Retirement income

Question 4

If the annuitant dies before the annuities start date

Answer 4

The premiums paid + interest earned will be given to the beneficiary

Question 5

What would the beneficiary receive even an annuitant dies during the accumulation period?

Answer 5

The insurer is obligated to return all a portion of the annuities value of the contract owner dies. The value will be equal to the amount of any contributions minus withdrawal or other expenses plus interest policy. Owner is required to name a beneficiary and title to proceed if they die during accumulation.

Question 6

What will it beneficiary received via New intent dies during the accumulation period?

Answer 6

The greater of the accumulated cash value or the total premium paid 

Question 7

Fixed annuities, provide each of the following except… guaranteed interest, retirement, funds, hedge against inflation and tax advantage little little bit

Answer 7

Fix annuities do not provide a hedge against inflation

Question 8

Which market index is normally associated within an index annuity rate of return NAIC, SEC, S & P 500, A & P 300

Answer 8

S&P 500; an indexed annuity rate of return is linked to a mark index like the S&P 500

Question 9

How soon can the benefit payment begin with the deferred annuity? Anytime after date of purchase anytime within the 12 months after DOP a minimum of six months after DOP a minimum of 12 months after DOP.

Answer 9

A minimum of 12 months after date of purchase again, bro

Question 10

Immediate annuities

Answer 10

Purchased with a single lump sum payment can start providing income payments within the first year starting 30 days from purchase date provide liquidation of a principal

Question 11

Immediate annuity / single premium immediate annuity SPIA

Answer 11

Use the structure payment of liability insurance settlements lottery winnings or other large sons

Question 12

Deferred annuities

Answer 12

Flexible, premium deferred annuity FPDA / single premium preferred annuity SPDA / fixed deferred annuity

Question 13

Deferred annuities

Answer 13

Will start providing income payments after the first year

Question 14

Annuities deferred

Answer 14

can be purchased with a single lump sum payment SPDA single premium deferred annuity

Question 15

Deferred annuity

Answer 15

With monthly payments, flexible premium, and deferred annuity FPDA

Question 16

Deferred annuity

Answer 16

Fixed deferred annuity pays out a fixed amount for life starting at a future date; interest credited to the cash values of annuities is deferred until distribution

Question 17

Deferred annuity cancellation

Answer 17

During the early contract years, insure can assess a back and load surrender charge

Question 18

Bail out

Answer 18

Single premium deferred annuity. Contracts wave surrender charges, if interest rate falls below a stated level.

Question 19

Terminated deferred annuity contract

Answer 19

To obtain surrender value, the insurer must first obtain authorization from owner

Question 20

Terminated deferred annuity contract

Answer 20

To obtain surrender value, the insurer must first obtain authorization from owner

Question 21

Accumulation value of a deferred annuity

Answer 21

Equal to the sum of premium paid plus interest earned minus expenses and withdrawals

Question 22

Which is the primary reason for buying an annuity? Tax-free income, risky, yet high return investment, instant estate, future economic security.

Answer 22

Future economic security

Question 23

Which type of annuity guarantees a stated number of income payments in regardless of the annuitant being alive? Life, annuity, certain, secure, life, annuity, irrevocable, survivor Toyota annuity, guaranteed life annuity.

Answer 23

Life annuity certain 

Question 24

Which annuity provides guaranteed accumulation or payout? Variable payout, fix accumulation, interest, guaranteed, annuity certain.

Answer 24

Annuity certain

Question 25

During the accumulation. Who can surrender an annuity? Payor, annuitant, beneficiary, policy owner

Answer 25

Policy owner

Question 26

An annuity currently experiencing tax deferred growth is in which phase? Payout, Accumulation, deferred growth.

Answer 26

Accumulation

Question 27

Which annuity payout option allows the policy owner to choose a predetermined number of benefit payments?

Answer 27

Period Certain.

Question 28

Period Certain.

Answer 28

An annuity where the policy owner chooses a predetermined number of benefit payments

Question 29

Which is not considered to be a purpose of an annuity? To create an estate, to liquidate an estate, for tax free growth of principle, to distribute accumulated principle.

Answer 29

Annuities are not intended to create an estate

Question 30

What is the primary use of an annuity? Retirement, income, disability, income, long-term care, benefits, death, benefits.

Answer 30

Retirement income

Question 31

What is the primary use of an annuity? Retirement, income, disability, income, long-term care, benefits, death, benefits.

Answer 31

Retirement income

Question 32

Refund annuity

Answer 32

If an annuitant dies during the distribution. The return annuity would give the beneficiary the difference between the annuity value and the income payments made.

Question 33

If an annuity dies before the annuities start date…. benefits will be given tax free only to a state beneficiary, nothing is given to the beneficiary, Premiums paid will be given to the beneficiary, premiums paid plus interest earned will be given to the beneficiary

Answer 33

Premium paid plus interest earned will be given to the beneficiary

Question 34

Which annuity requires premium payments that vary from year to year?

Answer 34

Flexible, premium deferred annuity

Question 35

Which annuity requires premium payments that vary from year to year?

Answer 35

Flexible, premium deferred annuity

Question 36

Fixed period settlement options are considered

Answer 36

An annuity

Question 37

Annuitization phase

Answer 37

The period when the accumulated value in an annuity is paid out

Question 38

Life income

Answer 38

Settlement option that pays a stated amount to an annuity, but provides no residual value to a beneficiary or anyone else

Question 39

Life income

Answer 39

Also known as straight life income payout option

Question 40

Straight life, income payout option

Answer 40

Offers protection against exhaustion of savings due to longevity

Question 41

Which of these statements regarding the annuitant is correct? The contract can only be assigned by an annuitant. Annuitant is the only individual who can surrender the contract. The annuitant must also be the beneficiary. The annuitants life expectancy determines the annuity payments.

Answer 41

The annuitants life expectancy determines the annuity payments. Annuity payments are based on the annuities life expectancy.

Question 42

Fixed immediate annuity payments

Answer 42

Are dependent upon principal, interest in contract’s income period

Question 43

Temporary annuity certain

Answer 43

Guarantees payments will be made for a specific number of years if the annuity dies before receiving all payments the beneficiary assigned will receive the payments for the remaining number of years

Question 44

Who assumes the investment risk with a fixed annuity contract?

Answer 44

The insurer

Question 45

Nonqualified annuities are taxes after

Answer 45

Exclusion ratio has been calculated

Question 46

How are annuities given favorable tax treatment?

Answer 46

Gains or tax at distribution

Question 47

Exclusion ratio

Answer 47

Formula used to determine the annual annuity income exempt from federal income taxes

Question 48

Exclusion ratio

Answer 48

Formula used to determine the annual annuity income exempt from federal income taxes

Question 49

Exclusion ratio

Answer 49

The total investment in the contract divided by the expected return

Question 50

Cost basis

Answer 50

Owners investment in the contract; the amount of money that has been paid into the annuity via premium

Question 51

Cost basis

Answer 51

Owners investment in the contract; the amount of money that has been paid into the annuity via premium

Question 52

Annual guaranteed benefit

Answer 52

What the annuitant receives multiplied by the number of years of the annual life expectancy

Question 53

Exclusion ratio

Answer 53

Cost basis equals premium paid equals total investment of contract divided by expected return, which is the annual guaranteed benefit received by the annuitant multiplied by the number of years of life expectancy, resulting in a ratio applied to benefit payments, providing the exclusion of percentage from income tax

Question 54

Earned interest

Answer 54

Is taxable if annuitant dies before payout

Question 55

Immediate annuity

Answer 55

Begin making payments after the 1st premium was paid

Question 56

Guaranteed lifetime withdrawal benefit GLWB

Answer 56

Rider on a variable annuity allowing minimum withdrawals from invested amount without requiring annuitization. Guarantees amount against invested amount withdrawals for duration of life

Question 57

Customer would like an annuity that provides a guaranteed accumulation or payout the type of annuity they’re seeking is called

Answer 57

Annuity certain a type of annuity that provides a guarantee of accumulation or payout; Income installments for fixed period as decided by the owner dies prior to the end of the period then the designated beneficiary would receive it for the remainder of the specific period

Question 58

Which of the following annuity payout options make no additional payments regardless of when the annuitant dies

Answer 58

Life only the life only annuity pay out option has no additional payouts regardless of when the annuitant dies

Question 59

If annuitant dies before the annuity start date, which of the following would occur

Answer 59

Premiums paid plus interest earned is returned to the beneficiary

Question 60

Which of these is considered to be a disadvantage of owning a fixed annuity?

Answer 60

During periods of inflation and New will experience the decrease in purchasing power of their payments

Question 61

How do interest earning accumulate in a deferred annuity?

Answer 61

On a tax deferred basis

Question 62

What is the non-forfeiture value of an annuity before annuitization?

Answer 62

All premiums paid plus interest minus any withdrawals and surrender charges