Annuity
If the annuitant dies during the accumulation period, who receives the benefits?
The beneficiary
True regarding period of an annuity
The period which the payments into the annuity grow tax deferred.
True or False - The creditor can only insure the debtor the amount owed.
True
Business uses of life insurance?
- Key person insurance (specialized knowledge, skills)
- Replacement on employee
- Proceeds goes to the business
Agent selling variable annuities must be registered with...
Annuity period is best defined as the time during which the annuitant?
Receives payments.
True or False - Credit life insurance benefits are paid to the borrower's beneficiary.
True
Who owes the Executive Bonus concerning the use of Life Insurance?
The company owes the policy.
What is true about an annuitant
1. Annuitant receives the annuity benefits.
2. Annuitant must be a natural person.
3. Annuitant's life expectancy is taken into consideration for the annuity.
Which of the following is NOT true regarding an annuity certain?
Benefits stop at the annuitant's death
Personal Uses of Life Insurance
- Survivor protection
- Estate creation
- Estate conservation
- Cash accumulation
- Liquidity (convert to cash)
3 Examples of business life insurance
- Executive bonuses
- Key Person
- Buy-sell funding
Under which installments option does the annuitant select the amount of each payment, and the issuer determines how long they will pay benefits?
Fixed amount
If an annuitant dies during the accumulation period, who will receive the annuity benefits?
Beneficiary
- Buy-sell funding
- Executive Bonus
- Key person
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
The beneficiary.
Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?
The employer is the owner and beneficiary.