Primerica Annuities
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license
Which of the following will NOT be an appropriate use of a deferred annuity?
Creating an estate
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Guaranteed surrender value
A married couple's retirement annuity pays them $250 per month. The husband dies and his wife continues to receive $125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?
Joint and survivor
If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a
Joint life annuity.
Annuities can be used to fund which of the following?
Retirement plans
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits.
Which of the following is TRUE regarding the accumulation period of an annuity?
It is a period during which the payments into the annuity grow tax deferred.
Which of the following is NOT true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity.
What happens if a deferred annuity is surrendered before the annuitization period?
The owner will receive the surrender value of the annuity.
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which of the following is NOT true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner.
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities.