C4 TEST Annuities
Premium paid for a variable annuity less expenses equal which of the following?
Accumulation units
Which of the following contracts requires that a series of benefit payments be made at specified intervals?
Annuity
Fixed annuity payouts are based upon all of the following factors EXCEPT?
Company's investment performance
One of the purposes of a Deferred Annuity is to:
Create an income for retirement
Which is a characteristic of an Equity Indexed Annuity?
Guaranteed minimum interest rate to the annuitant.
What is the purpose of a Market Value Adjusted Annuity?
It requires the annuitant to share the market risk with the insurer.
During the Pay-In period of an Annuity, who controls the account?
Owner
Which Annuity is based on Units rather than specific amounts?
Variable
Systematic liquidation of a principal sum is the basic function of:
an annuity
An individual has purchased an annuity to provide retirement income. The annuitant is concerned about losing the premium paid if death occurs before the retirement income installments equal the amount used to purchase the annuity. What can the annuitant purchase to be sure that the amount to be paid out will at least equal the amount paid in?
A cash refund annuity
A male and female, both age 31, contribute $100 per month to identical conventional annuities and 25 years later which of the following is correct?
Both are of equal value
Seven months after receiving monthly income from a life annuity, the annuitant marries and requests a change to Joint Survivor option. The insurer would do which of the following?
Continue to pay benefits as originally agreed
The Social Security program provides all of the following types of benefits EXCEPT:
deferred compensation benefits
A non-qualified deferred annuity surrender value would equal the principal plus interest less which of the following?
expenses and withdrawals
Social Security retirement benefits become available when a worker retires and has reached the age of at least:
62 years
The annuitant may be which of the following?
All of the above
Which of the following agencies regulate Variable Annuities?
All of the choices
A Fixed Period Annuity is which of the following?
An Annuity Certain
Who may a Single Premium Immediate Annuity be appropriate for?
An individual that plans to retire within the year
Variable Annuity payouts are adjusted based upon which of the following?
Annuity units
A contract designed to provide the owner with a Guaranteed Monthly Income is:
Flexible Premium Annuity
In regards to the accumulation period, which of the following statements is trueIn regards to the accumulation period, which of the following statements is trueIn regards to the accumulation period, which of the following statements is trueIn regards to the accumulation period, which of the following statements is trueIn regards to the accumulation period, which of the following statements is trueIn regards to the accumulation period, which of the following statements is true
Growth can continue after premium payments stop.
The Equity Index Annuity is designed to do which of the following?
Guarantees a minimum rate of growth with interest accredited based on performance of a targeted index like the S&P 500
An annuitant who is receiving payments from a variable annuity contract with a life annuity settlement option would be assured of which of the following? An annuitant who is receiving payments from a variable annuity contract with a life annuity settlement option would be assured of which of the following? An annuitant who is receiving payments from a variable annuity contract with a life annuity settlement option would be assured of which of the following?
He will receive payments as long as he lives
A conventional life annuity features which of the following? A conventional life annuity features which of the following?
Income for life with no residual beneficiary
In a fixed annuity, when benefits continue past the death of an annuitant, in the amount of the total premiums paid, it is said to be which of the following?
Installment Refund
An advantage of the Exclusion Ratio would be expressed by which of the following?
Interest is taxed and principal is tax free
John has been receiving income from an immediate annuity he purchased several years ago. Upon his death, income payments continue to his widow for the remainder of her life. John purchased?
Joint Life and Survivorship Annuity
For any given amount of annuity, which settlement option would provide the greatest level of periodic income payments to the payee?
Life annuity
At retirement, a variable annuity would guarantee the annuitant which of the following?
Monthly income payments for life (although the amount may change)
Which of the following annuities would provide the highest monthly income?
Pure or Straight Life Annuity
David purchased an annuity and received his first payment 30 days later. David purchased which type of annuity?
Single payment immediate annuity
Your client has a large sum of money to invest from the proceeds of the sale of his home. If he wants to purchase an annuity and start receiving payments now, what would you suggest?
Single payment immediate annuity
A Single Premium Deferred Annuity having a Back-End Load must be disclosed as which of the following?
Surrender Charge
Which of the following best describes taxation during the accumulation period of an annuity? Which of the following best describes taxation during the accumulation period of an annuity? Which of the following best describes taxation during the accumulation period of an annuity? Which of the following best describes taxation during the accumulation period of an annuity?
Taxes are deferred.
An Immediate Annuity is designed to provide each of the following features, EXCEPT:
The creation of an estate
An annuity is designed to do which of the following?
To create income by liquidating funds over a lifetime
All of the following are annuity settlement options EXCEPT:
Withdrawal plan
All of the following are true about annuities EXCEPT:
they have all the same characteristics as life insurance