quiz 6
The IRA early withdrawal penalty does not apply to distributions below except: a.Used to pay back taxes. b.Used to pay for higher education for your friend. c.The IRA owners death. d.Used to buy a first time home.
b.Used to pay for higher education for your friend.
Jason purchased an annuity, making a single lump-sum payment on Dec. 1 2009. His benefits began on Jan 1, 2010. What kind of annuity did Jason buy? a.Immediate b.Straight Life Annuity c.Flexible Annuity d.Deferred
a.Immediate
The annuitization period or liquidation period is the: a.Annuity period b.Maxed out period c.Accumulation period d.Annuity units period
a.Annuity period
If both an older and younger person had annuity funds of the same amount and both annuitize on the same date, exercising one of the life options, which individual would receive the larger payment? a.The amount of the payment is based on the purchase date of the annuity b.Older person c.Younger person d.Both would receive the same amount if their income tax bracket was the same.
b.Older person
Who would receive the highest payout for a $20,000 single premium immediate annuity, assuming all four contracts are identical? a.Sylvia, age 63 b.Joe, age 60 c.Barney, age 65 d.Audrey, age 60
c.Barney, age 65
What type of annuity would provide a locked in, guaranteed rate that makes monthly payments now? a.Immediate variable b.Deferred variable c.Immediate fixed d.Deferred fixed
c.Immediate fixed
What annuity benefit will pay a specific amount for the remainder of the annuitant`s life? a.Refund Life b.Installment certain c.Straight Life d.Joint and Survivor Life
c.Straight Life
Which of the following is not considered an IRA? a.Roth IRA with a fixed annuity. b.ESA. c.Simple IRA d.529 college saving plan.
d.529 college saving plan.
What is the disadvantage in buying a fixed annuity? a.Purchasing power may be eroded over time due to inflation. b.Interest rates are guaranteed. c.The company bears all the risk. d.Income payments are fixed and stable.
a.Purchasing power may be eroded over time due to inflation.
When making recommendations to senior citizens, the following information must be taken into account except: a.The senior`s awareness of your marital status. b.Product time horizon. c.Sources of income. d.The client`s investment experience.
a.The senior`s awareness of your marital status.
What is the difference between an immediate and a deferred annuity? a.Deferred payments are postponed, while the immediate payments start soon after 1st payment. b.Deferred payments are postponed, while the immediate payments are within 5 years from 1st payment. c.Immediate payments start in the future, while the deferred payment start within one year. d.The only difference and the main focus is on whether you start with a lump sum or monthly payments.
a.Deferred payments are postponed, while the immediate payments start soon after 1st payment.
Premium payment plans for a Variable Annuity contract would include all of the following choices, except: a.Deferred premium b.Single premium c.Level premium d.Flexible premium
a.Deferred premium
What type of annuity would feature a monthly payment and would not pay out immediately? a.Flexible premium deferred annuity. b.Single premium deferred annuity. c.Flexible premium immediate annuity. d.Lump sum immediate annuity.
a.Flexible premium deferred annuity.
A separate account would be used in each of the following except: a.Deferred annuity - fixed b.Immediate annuity - variable c.Flexible premium deferred annuity - variable d.Single premium deferred annuity - variable
a.Deferred annuity - fixed
Which of the following annuity payout or benefit options does not guarantee a lifetime income to the annuitant? a.Refund annuity b.An annuity certain c.Straight life annuity d.Joint and survivor
b.An annuity certain
An annuity that is purchased with a single, lump sum and provides income within one year is an: a.Single Premium Deferred Annuity b.Immediate Annuity c.Deferred Annuity d.Flexible Premium Deferred Annuity
b.Immediate Annuity
During the accumulation period of a deferred variable annuity, the value of the individual account arises or falls based on the a.Variable premiums b.Investment results c.Insurer's expenses d.Number of annuitants
b.Investment results
The person who receives payments from the annuity is an (most complete answer): a.Beneficiary b.Owner c.Annuitant d.Annuitantizer
c.Annuitant
All the following are true regarding annuities except: a.You will not pay taxes until you begin to withdraw your money. b.You can purchase a contract that provides lifelong income. c.Annuities themselves are considered qualified plans by the IRS. d.Annuities may be used for your IRA investment vehicle.
c.Annuities themselves are considered qualified plans by the IRS.
Which of the following IRA contributions are not tax deducible when the funds are contributed? a.Traditional IRA b.Simple IRA c.Roth IRA d.Sep IRA
c.Roth IRA
Before you visit a senior citizen`s home, you must provide all the following except: a.advise the senior he may invite family members to the presentation. b.state the purpose of the meeting when the meeting begins at the home. Agent must state the purpose of the meeting when the meeting begins at the seniors home. c.List of names of others who will be joining you on the sales appointment. d.12 point type written notice stating that a sales presentation will be given.
d.12 point type written notice stating that a sales presentation will be given.
All of the following are benefits of an annuity except: a.Interest earned is tax deferred. b.You can lock in a monthly income stream. c.Benefits may be paid to a beneficiary if an annuitant dies prematurely. d.Expenses and surrender charges are less than most other retirement products.
d.Expenses and surrender charges are less than most other retirement products.
What annuity payout option provides for lifetime payments to the annuitant but guarantees a certain minimum term of payments, whether or not the annuitant is living? a.Straight life income b.Installment refund option c.Temporary Annuity Certain d.Life with period certain
d.Life with period certain
Selling each of the following would require an additional securities license except: a.Immediate variable annuity. b.Deferred variable annuity. c.Variable TSA. d.S & P 500 indexed annuity.
d.S & P 500 indexed annuity.
All of the following are true about variable annuities except: a.Annuity income varies with the market value of securities b.Variable annuities are regulated by the S.E.C. c.Payouts are made in units, not fixed dollar amounts d.The method of purchase and settlement options differ from a fixed annuity
d.The method of purchase and settlement options differ from a fixed annuity
Of the following correct statements which statement is incorrect? a.Straight (Pure) life annuities provide income as long as the annuitant lives; benefits terminate at his/her death. b.An installment refund annuity guarantees a specific amount of benefits, payable to the annuitant only; if death occurs prior to total payout, a portion of the premium is refunded to the annuitants estate or beneficiary c.An annuity can be classified as immediate or deferred, depending on when benefit payments begin Annuities that pay benefits inspecified dollar amounts are fixed annuities; d.annuities that pay benefits in relation to units are variable annuities
b.An installment refund annuity guarantees a specific amount of benefits, payable to the annuitant only; if death occurs prior to total payout, a portion of the premium is refunded to the annuitants estate or beneficiary
Which of the following annuity settlement or benefit options might be most appropriate for providing retirement income to a married couple? a.Straight life annuity b.Joint and survivor c.Cash refund annuity d.Annuity certain
b.Joint and survivor
All of the following are annuity premium factors except a.Age b.Medical history c.Sex d.Assumed interest rate
b.Medical history
What happens to the annuity if an annuitant dies in the 3rd year of a 5 year period certain contract? a.The difference between what was paid out and what is left is paid to the beneficiary. b.The beneficiary receives the annuity value. c.The payments continue to the beneficiary until the end of the 5 year period. d.The payments stop and the beneficiary receives nothing.
c.The payments continue to the beneficiary until the end of the 5 year period.
An annuity is a living benefit and a/an: a.life insurance that is a useful tool for retirement planning. b.life insurance that pays a lump sum to a beneficiary. c.insurance policy that makes a series of periodic payments in exchange for a lump sum payment. d.insurance policy that makes a lump sum payment in exchange for a series of payments.
c.insurance policy that makes a series of periodic payments in exchange for a lump sum payment.