Life and Health Chapter 5
Jasmine has deposited $100,000 into a single premium immediate annuity. If Jasmine were to die before receiving $100,000 in payments, the balance of the $100,000 would be paid to her sister. Jasmine has selected the: A Life Income Joint and Survivor Option B Joint Life Option C Life Income Period Certain Option D Life Income with Refund Option
d
The annuity benefit or payment option requiring the greatest amount of capital per $1,000 of benefit is: A Life Income Joint and Survivor 75% B Life Income Joint and Survivor 50% C Life Income Joint and Survivor 66 2/3% D Life Income Joint and Survivor 100%
d
The pay-out period of an annuity is also referred to as the ______ period. A Deposit B Accumulation C Immediate D Annuity
d
Instead of waiting to receive her payments over time, Jeanne decides to obtain the greatest amount of money out of her annuity immediately. Which option did she choose? A Lump Sum B Straight Life Option (Life Income) C Life Income Period Certain D Life Income with Refund
a
A(n) ________ has all of the contractual rights in an annuity contract. A Beneficiary B Annuitant C Insurer D Owner
d
Which of the following Annuities would potentially be the most negatively impacted by the overall stock market falling in value? A Indexed B Guaranteed C Fixed D Variable
d
Which of the following annuities typically offers no guarantees? A Bonus Interest Rate Annuities B Indexed C Fixed D Variable
d
K owns a variable annuity with an assumed interest rate of 4%. If the actual performance of the separate account(s) is 5%, the effect on this month's income benefit check will be such that it: A Becomes Higher B All Depends on the Separate Account(s) Selected C Remains the Same D Becomes Lower
a
Sam wants to know at what age he should select a settlement option in order to receive the highest monthly income benefit payment. Which of the following will meet his objective regardless of the settlement option selected? A Age 70 B Age 55 C Age 62 D Age 65
a
At the time of her retirement at age 62, Jolene chose a Life Income Payment Option to have her annuity distributed. Five years later, when her health declines, she needs the distribution to be increased. How is this accomplished? A By adding a Cost of Living Rider B By adding a disability income rider C She cannot change the distribution once commenced D By adding an increase of benefits rider
c
If an annuity is purchased in December and monthly benefits begin in January of the following year, what type of annuity is it? A Single Premium Fixed Annuity B Flexible Premium Tax Sheltered Annuity C Single Premium Immediate Annuity D Variable Retirement Annuity
c
Instead of electing to annuitize the annuity, what is another common option chosen? A Choosing a Period Certain B Electing a Fixed Amount C Lump sum distribution D Selling the annuity in the secondary market place
c
Jill wants to know how much to put into her annuity in order to receive the greatest benefit payment amount. Which of the following will provide her with the largest monthly income regardless of the settlement option selected? A $250,000 B $500,000 C $1,000,000 D $750,000
c
The Payment Option that pays an income to two annuitants while both are living, and stops upon the death of the first annuitant, is which of the following? A Life Income with Refund B Life Income Joint and Survivorship C Joint Life D Life Income Joint and Survivorship with Period Certain
c
The insurer generally assumes the investment risk in all of the following annuities, except: A Fixed B Market Value Adjustment C Variable D Indexed
c
_____________ are allowed as a way to access annuity values without having to elect a settlement option or surrender the contract. A Premium deferrals B Loans C Systematic withdrawals D Contract waivers
c
All of the following are true regarding annuities, except: A They are used primarily to provide a steady stream of income B They are designed to protect against outliving one's income C They can liquidate an estate D They are similar to life insurance
d
Deferred annuities are normally purchased to defer ___________. A Withdrawals of any earnings B Earnings on any deposits C Taxes on any policy earnings D Withdrawals of any principal
d
James is nearing retirement and has accumulated $175,000 in an annuity. He wants the largest possible monthly benefit for as long as he lives. Which option should he choose? A Joint Life B Fixed Amount C Life Income with Refund D Life Income
d
With a Life Income Payment Option, what happens at the annuitant's death? A All payments cease B The estate is paid the total remaining balance C The beneficiary starts receiving benefits D Payments continue until the principal is paid out
a
X is 57 years old, and planning for their retirement. They do not know what their cash flow will look like over the next 10 years, but wants to fund an annuity to provide retirement income. Which of the following premium funding methods would be best for X to consider? A Flexible B Periodic C Variable D Single
a
All of the following are TRUE regarding a Variable Annuity, except: A The contract owner bears the investment risk and receives the return actually earned on invested assets, less any charges assessed by the insurer and investment managers B The number of annuity units received upon annuitization, and the unit value, remain level C Upon annuitization, accumulation units are converted into annuity units, which generate income based on the value of the units D Premiums paid during the accumulation period are invested into a separate account(s)
b
Electing a _____________ option for an annuity means that the annuitant will receive an income for life or for a temporary period of time. A Pay-In B Settlement C Funding D Distribution
b
Harry, the annuitant of a non-qualified tax deferred annuity with $40,000 cash value chooses the Life Income with Refund Payment Option when he annuitizes the policy. After receiving $1,000 each month for 80 months, Harry suddenly dies. How much will his beneficiary, his wife Lucille, receive? A $40,000 B Zero C Payments over the rest of her life D $80,000
b
If an annuity lifetime benefit is selected in most cases, it is an _________ election. A Excellent B Irrevocable C Revocable D Poor
b
The annuity settlement option that pays out the highest monthly income for as long as the annuitant lives, and leaves no residual value upon the annuitant's death, is the: A Life Income Joint and Survivor Option B Life Income Option C Life Income with Refund Option D Joint Life Option
b
Upon annuitizing an annuity, all of the following factors help in determining the amount of the income benefit payment, except: A Age B State of residence C Settlement option D Gender
b
Which of the following annuities does not have a traditional accumulation phase? A Single premium deferred B Single premium immediate C Flexible premium deferred D Periodic premium deferred
b
Which of the following is TRUE regarding Indexed Annuities? A The premiums paid are usually invested in separate account(s) B Values and benefits may increase, but not decrease C They have a level number of annuity units with a fluctuating unit value D Values and benefits are determined by the performance of a separate account
b
W and Z are annuitants of an annuity. W dies and Z receives 1/2 of the amount coming into their household when both were alive. They must have elected which of the following settlement options? A Joint Life B Life with Period Certain C Life with Installment Refund D Joint and 1/2 Survivor
d
