Annuities Questions

Variable

A licensed insurance producer must also have a securities registration in order to sell which annuity product

Variable

A licensed insurance producer must also have a securities registration in order to sell which annuity product?

Single Premium Deferred Annuity

A lump sum of money is placed into an account from which the annuitant will draw periodic benefits befinning more than a year from the date of purchase. This describes a:

Male age 80 The older male will receive the largest income benefit as he will have the shortest remaining life expectancy.

All else being equal, which of the following will receive the largest income benefit payment from an annuity?

Age, Risk tolerance, Income

All of the following are factors for a producer to consider when determining annuity suitability for a client

Disability, Death, Nursing facility stay for at least 30 days

All of the following are situations in which the insurer is likely to waive any annuity surrender charges

Reinvestment

All of the following are ways in which an annuity can be classified based on its premium funding method, except:

Owner, Beneficiary, Insurer (The annuitant in an annuity is the equivalent of the insured in a life insurance policy.)

All of the following terms are the same regardless if the policy is life insurance or an annuity

Remain the same

An individual owns a bariable annuity. Upon annuitization, the number of Annuity Units on which the benefit amount is based will ______ from month to month

Both provide owners with all of the contractual rights Both may have a names beneficiary Both provide some form of death benefit

Annuities and life insurance are similar in all of the follwing ways...

Payout option selected When income benefits become payable Method of funding Method of premium payment

Annuities are classified in all of the following ways:

Retirement

Annuities are primarily designed to accumulate funds for a ______fund

An annuity

G is concerned about the future and living comfortable retirement. Which of the products listed below is ideally suited to help G prepare for their retiement goal?

The amount of tax-deferred earnings will now become taxable

If Robert wishes to cash out his annuity at age 70 after having it for over 40 years, what should he know about prior to doing it?

Falling (The Bailout Provision (Escape Clause) in some contracts allows the owner to withdraw money from the annuity without surrender charges if the crediting rate falls by more than a specific amount. This will enable the policyowner to consider other savings and investment options.)

In what interest rate environments is a bailout provision most likely to be exercised by the annuity owner?

Lump sum distribution

Instead of electing to annuitize the annuity, what is another common option chosen?

Lump Sum

Instead of waiting to receive her payments over time Jeanne decides to obtain the greatest amount of money out of her annuity immediately. which option did she choose?

Life Income with Refund Option

Jasmine has deposited $100,000 into a single premium immediate annuity. If Jasmine were to die before receiving $100,000 in payments, the balance of the $100,000 would be paid to her sister. Jasmine has selected the :

Remains the Same

K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account(s) is 4%, the effect on this month's income benefit check will be such that it:

Becomes Higher

K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account(s) is 5%, the effect on this month's income benefit check will be such that it:

Beneficiary

Primarily, the _________ is the person who will receive any residual contract benefits after the annuitant has died.

Joint Life

The Payment Option that pays an income to two annuitants while bothe are living, and stops upon the death of the first annuitant, is which of the following?

Guaranteed minimum withdrawal benefit

The ______ gives the owner of a variable annuity the ability to withdraw a maximum percentage of the annuity value until the initial investment amount has been recouped.

Settlement

The annuity _____ option selected can provide a temporary or lifetime payment

Life Income Option

The annuity settlement option that pays out the highest monthly income for as long as the annuitant lives, and leaves no residual value upon the annuitant's death is the:

Annuity

The pay-out period of an annuity is also referred to as the ______ period.

Nothing

Under an annuity with a Joint Life Payment Option, what will the survivor receive upon the death of the first annuitant

If the annuity is funding a qualifies retirement plan and the IRS imposes a limit on that type of plan

Under what conditions would there be a limit as to how much premium can be deposited into an annuity?

Variable

What annuity offers no guarantees

To protect against outliving one's income

What is the primary purpose of an annuity?

Life Income with Period Certain

Which Payment Option pays an income for the life of the annuitant or for a specified period, which ever is longest?

Variable (If the actual return is lower than the AIR, the monthly annuity payment will be reduced. If the actual return is equal to the AIR, the monthly annuity payment will remain the same as the previous month. If the actual return is greater than the AIR, the monthly annuity payment will increase from the previous month.)

Which annuitiy has its income benefit payments related to an assumed interest rate (AIR)?

Variable

Which annuity is the only one regulated by the SEC, FINRA, and State insurance departments?

Equity - indexed annuity

Which annuity product offers interest rates linked to the positive performance of the S&P 500

Life insurance when the insured dies while the policy is in force

Which of the following death benefits is paid out to the beneficiary income tax free