ANNUITIES

ANNUITIES 101

TERMS

SCENARIOS

INVESTING

PAYOUT

100

Which contract allows for the liquidation of an estate?

A. Endowment

B. IRA

C. Annuity

D. Whole Life

C. Annuity

100

This person purchases the contact and has all the rights.

A. Owner

B. Annuitant

C. Beneficiary

D. Insurance Company

A. Owner

100

Jason has a joint life annuity for him and his wife, Laura. They are currently both recieve payments and have been for the past 3 years. Jason passes away. When does Laura stop recieving payments?

A. Upon Jason's death

B. Until Laura dies

C. For an additional 3 years

D. Until Laura is 65

A. Upon Jason's death

100

These annuities provide level benefit payments that do not vary.

A. Variable Annuities

B. Fixed Annuities

C. Indexed Annuities

D. Pure Life Annuities

B. Fixed Annuities

100

These payments stop at the annuitant's death, no matter how soon in the annuitization period that is.

A. Pure Life

B. Life Only

C. Straight Life

D. All of the above

200

What can an annuity be used for?

A. Retirement Income

B. College Funds

C. Extra Savings

D. All of the above

200

This person recieves payments from the annuity and must be a person.

A. Owner

B. Annuitant

C. Beneficiary

D. Insurance Company

B. Annuitant

200

Christian has a Joint and 1/2 Survivor annuity for him and Lacey, his spouse. Christian has been recieving $3,000 per month in installments. Christian passes away at the age of 67. Lacey lives to be 78. How much are Lacey's installments after Christian passes away?

A. $3,000

B. $2,000

C. $1,500

D. $0

C. $1,500

200

The premiums for this annuity type are deposisted into the life insurance company's general account.

A. Fixed Annuity

B. Variable Annuity

C. Indexed Annuity

D. Refund Life Annuity

A. Fixed Annuity

200

If the annuitant dies before the principle is paid out, the remainder of the principle will be refunded to the beneficiary in this type of policy.

A. Pure Life

B. Life Only

C. Life with Guarantee Minimum

D. Straight Life

C. Life with Guarantee Minimum

300

Annuities are classified according to all of the following except:

A. How the premiums are paid

B. When the benefits are scheduled to begin

C. How long the benefits are paid

D. The amount of the contract

300

This person recieves benefits from the annuity if the annuitant dies

A. Owner

B. Annuitant

C. Beneficiary

D. Insurance Company

C. Beneficiary

300

Jane has a Life Income with a 20 year period certain option. Jane dies 5 years after she gets the policy. How many years Mark, her beneficiary, get paid?

A. 5 years

B. 15 years

C. 20 years

D. 0 years

B. 15

300

This annuity is often tied to a familiar index like the S&P 500.

A. Fixed Annuity

B. Variable Annuity

C. Indexed Annuity

D. Whole Life Annuity

C. Indexed Annuity

300

These annuity payments are guaranteed for the lifetime of the annuitant and for a specific time period for the beneficiary.

A. Life with Guarantee Minimum

B. Pure Life

C. Life with Period Certain

D. Refund Life

C. Life with Period Certain

400

This payment option is a one-time, lump sum payment.

A. Periodic Premium

B. Level Premium

C. Single Premium

D. Flexible Premium

C. Single Premium

400

This is the time period when the annuity owner pays money into the annuity either as a lump sum or through payments.

A. Accumulation Period

B. Annuitization Period

C. Authorization Period

D. Payout Period

A. Accumulation Period

400

Luigi rolled over $90,000 from his old 401(k) into an annuity. When he retires, how much of the $90,000 is taxable?

A. 100%

B. 75%

C. 50%

D. 0%

A. 100%

400

The payments made into this annuity are invested in the insurer's separate account.

A. Fixed Annuity

B. Indexed Annuity

C. Variable Annuity

D. Refund Life Annuity

C. Variable Annuity

400

When the annuitant dies, the beneficiary will continue to recieve guaranteed installments until the entire principle amount has been paid out.

A. Cash Refund

B. Installmend Refund

C. Refund Life

D. Life with Period Certain

B. Installment Refund

500

Annuities are a type of life insurance product.

A. True

B. False

500

This is when the funds are converted to a stream of income payments to the annuitant.

A. Accumulation Period

B. Annuitization Period

C. Refund Option

D. Beneficiary Payout

B. Annuitization Period

500

Mario purchased an annuity using $20,000 from his personal saving's account. By the time he retires, he will have $140,000 in the account. How much of the $140,000 is taxable?

A. $140,000

B. $20,000

C. $0

D. $120,000

500

This type of annuity requires agents to hold a securities license in addition to a life license and must be registered with FINRA.

A. Fixed Annuity

B. Variable Annuity

C. Indexed Annuity

D. Refund Life Annuity

B. Variable Annuity

500

The annuitant selects the time period for the benefits and the insurer determines how much each payment will be.

A. Fixed Period Installments

B. Fixed Amount Installments

C. Indexed Installments

D. Beneficiary Only Installments

A. Fixed Period Installments