Life exam quiz 5

When an annuity is written, whose life expectancy is taken into account?

Annuitant

Which of the following will not be an appropriate use of deferred annuity?

Creating an estate

Which of the following best describes a bail out provision?

It allows the owner to surrender the annuity without a charge if interest rates drop a specified amount within a certain time frame

Why is an equity indexed annuity considered to be a fixed annuity?

It has guaranteed minimum interest

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant

Annuities can be used to fund which of the following?

Retirement plans

In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the investment?

The annuitant will receive the higher of either the guaranteed or the minimum current rate of return

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The cash value will be paid to the annuitants estate

which of the following describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

which of the following is not fundable by annuities?

death benefits

which of the following is true regarding a waiver of a surrender charge on an annuity contract?1

the charge may be waived if the annuitant is confined to a long term care facility for least 30 days

which of the following best describes which accumulated money is covered into income payments

the period of time during which accumulated money Is converted into income payments

A married couples 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. What settlement option did they select?

Joint and survivor

which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

Insurers guaranteed minimum rate of interest