Primerica (Annuities )

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

Deferred

What qualifies an individual to contribute to an IRA?

Earned income

Which of the following types of annuities will generally provide the highest monthly income?

Straight life

2 A 403(b) plan, commonly referred to as a TSA, is available to be used by

Teachers and not-for-profit organizations.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

How are contributions to a tax-sheltered annuity treated with regards to taxation?

They are not included as income for the employee, but are taxable upon distribution.

All of the following are true regarding a qualified annuity EXCEPT

At distribution, all amounts received by the employee are tax free.

Which of the following can surrender a deferred annuity contract?

Only the annuity owner

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

All of the following are true of an annuity owner EXCEPT

The owner must be the party to receive benefits.

Equity indexed annuities

Seek higher returns

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

Joint life annuity.