L/H UNIT 9 CHECKPOINT
D) the annuitization period
The period during which annuity benefits are received is called A) the credit period B) the accumulation period C) phase 2 D) the annuitization period
C) the accumulation period
The period between the purchase of an annuity and when the benefits begin is called A) the annuitization period B) phase 1 C) the accumulation period D) the distribution period
B) they can be used to create an estate
All of the following characteristics of annuities are true EXCEPT A) they are often called upside down life insurance B) they can be used to create an estate C) they protect against living too long D) they use a lump sum of accumulated money to guarantee income payments while living
D) when the annuitization period starts, additional premium payments can be made
All of the following statements about the annuitization period are correct EXCEPT A) when the annuitization period starts, the annuity cannot be surrendered B) when the annuitization period starts, the owner can't change the contract C) when the annuitization period starts, no withdrawals can be taken D) when the annuitization period starts, additional premium payments can be made
C) an addition 10% penalty on taxable earnings
If a withdrawal of an annuity is taken before age 59 1/2, there is A) no additional penalty on taxable earnings B) an additional 15% penalty on taxable earnings C) an additional 10% penalty on taxable earnings D) an addition 5% penalty on taxable earnings
D) joint life and survivor option
Susan and Tim 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? A) joint life option B) life with period certain option C) life-only option D) joint life and survivor option
D) 1 month *the earliest an income payment could be paid is 1 month, and the latest is 1 year*
The earliest that a single premium immediate annuity A) 5 years B) 1 year C) 10 years D) 1 month
B) life with refund
The life-only annuity option is also referred to all of the following EXCEPT A) straight life B) life with refund C) life-no refund D) pure life
A) fixed annuity
Which of the following annuities has a value that will never be less than the amount paid into the contract? A) fixed annuities B) equity-indexed annuities C) variable annuities D) market value-adjusted annuities
C) variable annuities
Which of the following annuities requires that the producer have a securities license? A) fixed annuities B) market value-adjusted annuities C) variable annuities D) equity-indexed annuities
C) life-only option
Which of the following annuity payout options pays the highest monthly income? A) joint life option B) life with period certain option C) life-only option D) life with refund option
D) annuities
Which of the following is designed to protect a person from running out of money from "living too long?" A) death benefits B) permanent insurance C) term insurance D) annuities
C) the deferred annuity owner must annuities the contract
Which of the following statements about a deferred annuity is NOT true? A) deferred annuities do not start an income stream immediately B) deferred annuities are a vehicle to accumulate money for future needs C) the deferred annuity owner must annuities the contract D) with deferred annuities, the annuity owner can choose the amount and frequency of the premium
B) the total premiums 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 A) the total premiums left to pay in the annuity B) the total premiums paid, minus any withdrawals C) 74% of the total premiums paid D) the total premium paid, plus any withdrawals