Unit 9 review

They can be used to create an estate

All of the following are characteristics of annuities except

When the annuitization period starts, additional premium payments can be made

All of the following statements about the annuitization period are correct except

An additional 10% penalty on taxable earnings

If a withdrawal of an annuity is taken before age 59.5, there is

Joint life and survivor option

Susan and Time are married, and they chose an annuity option that would pay one of them for the rest of their life if the other one died. Which of the following is the option that they chose?

1 month

The earliest that a single premium immediate annuity can be paid is

Life with refund

The life-only annuity option is also referred to all of the following except

The accumulation period

The period between the purchase of an annuity and when the benefits begin is called

The annuitization period

The period during which annuity benefits are received is called

Fixed annuities

Which of the following annuities has a value that will never be less than the amount paid into the contract?

Variable annuities

Which of the following annuities requires that the producer have a securities license?

Life-only option

Which of the following annuity payout options pays the highest monthly income?

Annuities

Which of the following is designed to protect a person from running out of money from "living too long?"

The deferred annuity owner must annuitize the contract

Which of the following statement about a deferred annuity is not true?

The total premium paid, minus any withdrawals

With a deferred annuity, the amount paid as the death benefit is the greater of the accumulated value of the annuity or