Chapter 5
Under which of the following annuity options does the new intent select the time. For the benefits and the insured determines how much each payment will be.
Installments for a fixed period
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity
Insurer's guaranteed minimum rate of interest
Which of the following is not true regarding the life with guaranteed minimum annuity settlement option?
It does not guarantee that the entire principal amount will be paid out.
Annuities can be used to fund, which of the following
Retirement plans Since annuities are a popular means to provide retirement income, they are often used to fund qualified retirement plans.
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives as her agent you should recommend.
Straight life
Which of the following is not true regarding the annuitant
The annuitant cannot be the same person as the annuity owner.
All of the following statements about equity index annuities are correct except
The annuitant receives a fixed amount of return
The annuity owner dies during new accumulation. Without naming a beneficiary annuity, cash value exceeds premiums paid which of the following is true.
The cash value will be paid to the annuitants estate
Which of the following best describes what the annuity period is
The period of time during which accumulated money is converted into income payments
Which of the following products provides income for a specified period of years or for life and protects a person against outliving their money
An annuity An annuity is a contract used to accumulate funds that are to be distributed at a specified time in the future as a periodic payment of accumulated funds.
Which of the following is not fundable by annuities?
Death benefits
The term fixed in a fixed annuity refers to all of the following, except
Death benefit A fixed annuity is fixed in the sense that it provides a guaranteed minimum rate of interest and income payments that do not vary from one to the next. The company also guarantees the specified dollar amount for each payment and the length of the payout period. Annuities do not provide a death benefit.
Which of the following is not true about a joint and survivor annuity benefit option
Payments stop after the first death among the annuitants.
Which of the following best describes a pure life annuity settlement option
Pure life provides payments for as long as the annuitant is alive.
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after one year since the annuity was purchased. What type of annuity is it?
deferred