Life Insurance Exam Ch 5

Jack and Jill are twins. When their grandfather died, he left each of them $100,000, which they each used to purchase an annuity. When they retire, since each select the life income option, which will receive the larger monthly annuity payment?

Jack's payment will be larger

Equity indexed annuities

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If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?

$50,000

Which of the following products will protect an individual from outliving his or her money?

Annuity

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary

What happens if a deferred annuity is surrendered before the annuitization period?

The owner will receive the surrender value of the annuity