Ch. 8 Annuities Test
Income period
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principle, interest, and the contract's.. Surrender charge Death benefit Cash refund Income period
Refund annuity
An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? Variable annuity Refund annuity Rebate annuity Refund annuity
Policy owner
During the accumulation period, who can surrender an annuity? Payor Annuitant Beneficiary Policy owner
A minimum of 12 months after the date of purchase
How soon can the benefit payments begin with a deferred annuity? Anytime after date of purchase Anytime within 12 months after the date of purchase A minimum of 6 months after the date of purchase A minimum of 12 months after the date of purchase
The premiums paid plus interest earned will be given to the beneficiary
If the annuitant dies before the annuity start date... The benefits will be given tax-free only to a stated beneficiary Nothing is given to the beneficiary The premiums paid will be given to the beneficiary The premiums paid plus interest earned will be given to the beneficiary
After the first premium has been paid
When does an immediate annuity begin making payments? After multiple premiums have been paid After the first premium has been paid After policy has been active for one year After the incontestable period
Life only
Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies? Life only Life with period certain Cash refund Installment refund
Annuities are intended to create an estate
Which of these is NOT considered to be a purpose of an annuity? Annuities are intended to create an estate Annuities are intended to liquidate an estate Annuities are intended for the tax-free growth of principle Annuities are intended to distribute accumulated principle
Life annuity
Which type of annuity stops all payments upon the death of the annuitant? Life annuity Period certain annuity Cash refund annuity Joint and Survivor annuity
The insurer
Who assumes the investment risk with a fixed annuity contract? The owner The annuitant The insurer The beneficiary
