My Annuities
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| For a single premium deferred annuity, the ___________________ is the time between the purchase date and the date when benefits begin. | show 🗑
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| show | both
In most cases the annuitant is also the contract owner. The contract owner pays premiums and chooses the beneficiary. In the event that the annuitant is not the contract owner, he/she would not pay premiums nor would he/she select the beneficiary.
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| Insurance companies use 5 major factors to determine annuity premiums. What are the 5 major factors? | show 🗑
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| show | A deferred annuity payout period must begin within 12 months of purchase
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| Which of the following would be most likely to purchase an immediate annuity? Newly married couple Man who received a settlement for injuries occurring from an automobile accident Couple about to adopt a baby All of the above. | show 🗑
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| show | An immediate annuity is a suitable option for a healthy individual who probably will live longer than most people in his/her age group. Because her life expectancy is not very good, she will probably lose most of her investment
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| show | disadvantage to immediate
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| disadvantage to deferred or immediate annuities: The guaranteed income may be less than could be earned in another investment | show 🗑
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| show | immediate
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| In the event of a downturn in the market, the benefit payments remain level, is an example of an advantage of _______________ | show 🗑
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| For those considering an immediate annuity, what is not an advantage of this type of investment? | show 🗑
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| All periodic premium annuities are _______________. | show 🗑
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| show | She can purchase a life annuity certain
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| Annuities offer various premium payment options. Which of the following is not an annuity premium payment option? Flexible premium Indexed premium Level premium Single premium | show 🗑
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| The owner of an annuity can stop making premium payments during the accumulation period without losing the value that has accumulated in the annuity. The right to the cash value that has accumulated in the annuity is called the - | show 🗑
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| Annuities have a variety of payout options. All of the following are annuity payout options EXCEPT: Cash (lump sum) Annuity certain Flexible payment Refund life annuity | show 🗑
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| show | Annuity plans do not have loan provisions
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| Mary has reached age 65 and she wants to begin a monthly income. She has funded her annuity with after tax contributions, and she wants to know what her tax liability will be going forward. Her agent explains that her tax will be calculated using: | show 🗑
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| show | When a person annuitizes a non-qualified annuity, part of the money returned is considered principle and part is considered earnings. The exclusion ratio is used to determine which part of the payment will be excluded from income tax liability.
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| show | the company's general fund
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| show | joint income for three individuals
a joint can be for 2 people not 3
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| show | inflation
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| Earl has deposited a large lump sum with an insurance company and he will begin receiving monthly payments next months. Earl has purchased: | show 🗑
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| show | The mortality charge, The expense charge, The investment fee for each separate account
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| A variable annuity has a minimum guaranteed income benefit? | show 🗑
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| a variable annuity has a Accumulation units in the accumulation phase | show 🗑
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| show | yes
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| does a variable annuity have Varying sub-accounts or investment | show 🗑
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| Variable annuities have all features EXCEPT: -Account values accumulate tax deferred -There are usually a variety of investment choices -Money can be withdrawn at any time without penalty -Optional riders are available for an extra charge | show 🗑
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| To have an approved presentation of a variable annuity the prospect must receive what document | show 🗑
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| In order to sell variable annuities, the sales person must be qualified. What is required to qualify to sell variable annuities | show 🗑
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| show | FIFO (first in first out)
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| show | yes
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| Can an equity-indexed annuity will have the following feature: A crediting method for gains | show 🗑
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| show | no
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| Can an equity-indexed annuity will have the following feature: A cap rate to limit returns | show 🗑
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| An equity-indexed annuity will provide which benefits? | show 🗑
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| show | A market rate annuity will usually credit a higher interest rate than a fixed annuity
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| Since the insurance company will generally pay a higher rate on a Market Rate annuity (MVA). What is the disadvantage to the buyer? | show 🗑
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| An ordinary deferred annuity with a decreasing term life insurance rider is called a | show 🗑
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| The owner of an insurance policy and the insured are usually the same person. However, sometimes the policy owner is a different person. This is known as | show 🗑
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| There are many types of retirement plans. Which of the following is not a qualified plan? Defined contribution (401(k)) Defined benefit (Pension Plan) Executive Bonus SEP IRA | show 🗑
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| show | 501 ( c) (3) plan
is an organization that is chartered as a non-profit corporation, and that is not a retirement plan.
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| Bill has several emps that he would like to retain for the long term good of his company. He has paid in the maximum allowed on his qualified retire plan. What is a possible choice that would provide both Bill and his key employees an additional benefit? | show 🗑
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| t or f Qualified plans have specific rules or participation and non-qualified plans do not | show 🗑
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| show | false
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| t or f Highly compensated employees may be limited by qualified plans and non- qualified plans do not have the same limits. | show 🗑
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| show | true
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| If You or your spouse are not covered by a company sponsored qualified plan can you deduct an IRA contribution from your taxable income | show 🗑
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| show | no, never
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| show | roth
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| show | roth
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| show | roth
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| show | Max should have his funds transferred directly to a new trustee without taking possession of the funds.
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| show | An annuity to a life insurance policy
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| show | A 1035 exchange is allowed from like products to like products. different tax rules for insurance and annuities
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| Mr. Brown knows that his social security benefits are determined using a formula based on his earnings. What are the 3 traditional benefits of the social security program? | show 🗑
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| show | 12.40%
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| show | The cash received exceeded the premiums paid
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| show | 300
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| what is a benefit provided by an annuity contract that makes it different from other investments? | show 🗑
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| Jose purchased an annuity for $20,000 and the expected return is $40,000. If the annuity pays $600 per month, what portion of the $600 is taxable? | show 🗑
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| A variable annuity separate account will be invested in which of the following types of investments? | show 🗑
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| show | The interest rate
The total capital
The payout option selected
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| T or F regarding life income annuity: If the annuitant is older, the payment period is longer | show 🗑
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| T or F regarding life income annuity: If the annuitant is older, the payment is larger | show 🗑
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| T or F regarding life income annuity: If the annuitant is younger, the shorter the payment period | show 🗑
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| T or F regarding life income annuity: If the annuitant is older the monthly payment is smaller | show 🗑
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| show | no, Once the payout option is selected, it cannot be changed after payments begin
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| ___________ determine(s) the value of a separate account in an annuity during payout. | show 🗑
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| Sophie has a variable annuity. She wants to know when she reaches retirement, what percent of the total value of all accumulations units credited to her account will be converted to annuity units. | show 🗑
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| show | annuity period
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| does age of beneficiary impact annuity benefit | show 🗑
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| show | yes
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| show | yes
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| What is the primary function of an annuity | show 🗑
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| Clancy has bought a single premium immediate annuity. He must start taking payments _____. | show 🗑
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| show | He will receive a payout for life or a fixed number of years - whichever is last
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| show | within a year or less from the time it was purchased
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| How is the benefit amount that an annuitant receives from a variable annuity determined? | show 🗑
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| show | payout remains the same for life
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| What kind of annuity or annuities promises two annuitants full income for both their lifetimes? | show 🗑
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| show | straight life annuity
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| show | At a specified number of years after purchase but no sooner than at least one year after purchase
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| show | risk of outliving your income
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| James is an annuitant receiving monthly payments from a variable annuity under a joint and 2/3rds to the survivor option. What will the surviving annuitant receive when the primary annuitant dies? | show 🗑
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| Who is responsible for regulating the separate account of a variable annuity? | show 🗑
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| The ____________ is used to calculate the tax-free portion of an annuity payment | show 🗑
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| show | dollar cost averaging
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| show | brokers and dealers
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| show | it ceases when the second annuitant dies
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| Who is responsible for regulation of variable annuities? | show 🗑
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| Can Vicki, who has a valid life insurance license in the state, also sell variable annuities? | show 🗑
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| show | at the death of the last annuitant
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| An annuitant bought an immediate annuity at the age of 60. When she turned 65, she decided that she wanted to stop the annuity, get a refund of the remaining amount, and move to Brazil. What does the annuity company do? | show 🗑
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| The benefit amount that an annuitant receives from a variable annuity is determined by | show 🗑
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| Before variable annuity benefits can be paid out, accumulation units must be converted to: | show 🗑
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| Tax Sheltered Annuity plans are available to employees of the following type of organizations: | show 🗑
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| Daniel accumulated $80,000 in his annuity. He is receiving $800/month and each unit is worth $2.00. How many units does he receive each month? | show 🗑
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| Variable Annuities were created in order to do | show 🗑
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| show | SEC
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| Which of the following retirement plans does NOT automatically qualify for a federal income tax deduction. Single premium deferred annuity SEP 403b Corporate pension plan | show 🗑
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| show | Annuitants who discontinue premium payments
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| show | joint and survivor annuity
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| If an annuity owner receives $2000.00 a month, and value of each annuity unit is $2, how many units does he receive monthly? | show 🗑
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| show | false
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| show | joint and survivor
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| Which of the following is NOT often included in variable annuity options. A lump sum payout An income for life A list of beneficiaries A specified period of time | show 🗑
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| Variable annuities guarantee ___________. | show 🗑
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| What is the period called from when the annuity contract is issued to when the payments start? | show 🗑
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| show | annuity units
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| show | dollar cost averaging
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| show | 80%
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| Who is responsible for the regulation of variable life insurance? | show 🗑
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| In regards to characteristic of a "joint and survivor" annuity True or False: A variable monthly lifetime income for two people based upon the performance of the annuities mutual funds. | show 🗑
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| show | true
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| show | false,
The actuarial tables say women live longer than men, therefore the company can use the sex of the individual as a payout factor.
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| In regards to characteristic of a "joint and survivor" annuity True or False: A predictable monthly income for life for two people based upon an interest rate in effect at the time it is annuitized. | show 🗑
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| show | when premium payments are discontinued
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| What must happen before the payout phase begins on an annuity? | show 🗑
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| How is an immediate annuity purchased? | show 🗑
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| show | period certain
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| Kimberly works for a non-profit, charitable organization. What distinct class of retirement plans is available to Kimberly and other employees of certain nonprofit charitable organizations? | show 🗑
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| In a variable annuity, who is responsible for regulating the separate account? | show 🗑
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| can deferred annuities have flexible premiums | show 🗑
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| show | yes
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| show | true
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