Phases
Phase in which premiums accumulate value
What is the Accumulation Phase
The investment choices within a variable annuity are called this
What is sub accounts
This tax market is indicative of a policy owner using earned income to fund their annuity
What is a qualified tax market
This is the person whose life the payout income payments will be based on
Who is the annuitant
The early distribution penalty for withdrawals before 59.5 is assessed by who
Who is the IRS
Irrevocable Act of going from Accumulation Phase to Payout Phase
What is Annuitization
The act of transferring money from one subaccount to another is known as a
What is a fund transfer / exchange
Having a policy value that is a combination of Cost Basis and earnings is indicative of this tax market
What is the Non-Qualified
This person has all rights on the policy
Who is the owner
Contract Penalty / Surrender Charges are a provision of what?
What is the product
What is the Annuity Commencement Date
This can be done one time or on a schedule and will reallocate the amounts in the subaccounts to maintain a desired asset allocation
What is a rebalance
Earnings in an annuity have potential to be tax exempt with this tax market
What is a Roth IRA
Who takes on the risk with a fixed annuity?
Who is the Insurer
This fee is charged to supplement the Mortality and Expense Risk and Admin fees when the policy value is below a certain value
What is an annual contract fee
Straight Life refers to an income stream available during which phase of an annuity?
What is the Payout Phase
Unlike a mutual fund where investments are publicly traded, annuity investments are traded how?
What is privately traded
FIFO is used for this type of cost basis and withdrawals from Roth IRAs
This person receives the death benefit upon the passing of the owner
Who is the beneficiary
This fee is applied when a benefit is added to a policy by a policy owner that provides protection from market fluctuation or may reduce fees
What is a rider fee
The status of the deferred policy will show as this when the policy enters its payout phase
What is annuitized
The piece of the portfolio that the investor purchases in a variable annuity that is similar to a share is known as what
What is a unit
When filing taxes, contributions to a IRA can be considered
Tax Deductible
This is the person who sold the annuity to the policy owner
Who is the financial advisor / agent
This fee is in place to cover cost of management of a portfolio and may also be called a subaccount fee
What is the portfolio management fee