Annuities

All of the following are true of an annuity owner except

The owner must be the party to receive benefits.

Which of the following is not findable by annuities

Death benefits

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?

The surrender charge is a percentage of the cash value and decreases over time.

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

Under which of the following annuity options does the annuitant select the time period for the benefits and the insurer determines how much money each payment will be

Installments for a fixed period

An agent selling variable annuities must be registered with

FINRA

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint Life

Which of the following is not true about a joint and survivor annuity benefit option

Payments stop after the first death among the annuitants.

Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

a fixed amount

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

creating an estate Deferred annuities grow tax deferred, and are best suitable for accumulating retirement income or funds for children's college education.

Which of the following is true regarding the accumulation period of an annity

It is a period during which the payments into the annuity grow tax deferred

Which of the following is true regarding the annuity period

It may last for the lifetime of the annuitant

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 annuitants spouse receive in benefits

$50,000