CHAPTER 8 LIFE INSURANCE

23 October 2022
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21 test answers
question
After the first premium has been paid
answer
When does an immediate annuity begin making payments?
question
Straight life
answer
Which of these will have the highest monthly payout upon annuitization?
question
Exclusion Ratio
answer
The taxable portion of each annuity payment is calculated using which method?
question
Refund annuity (An annuity that returns the difference between the annuity value and the income payments made to a beneficiary when the annuitant dies during the distribution period is a refund annuity.)
answer
An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity ( a fixed sum of money paid to someone each year, typically for the rest of their life.) value and the income payments already made?
question
Annuitization phase
answer
Which of the following is considered to be the period when the accumulated value in an annuity is paid out?
question
Life income (The settlement option that pays a specified amount to an annuitant, but pays no residual value to a beneficiary is known as life income.)
answer
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
question
Life only (The life only annuity payout option has no additional payouts regardless of when the annuitant dies.)
answer
Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?
question
A minimum of 12 months after date of purchase (A deferred annuity is an annuity contract in which periodic income payments are not scheduled to begin for at least 12 months.)
answer
How soon can the benefit payments begin with a deferred annuity?
question
retirement income
answer
An annuity is primarily used to provide
question
Equity-indexed annuity
answer
Which of the following is an annuity that is linked to a market-related index?
question
S & P 500 (An indexed annuity rate of return is linked to a market index, like the S & P 500.)
answer
Which market index is normally associated with an indexed annuity's rate of return?
question
the premiums paid plus interest earned will be given to the beneficiary ( If the annuitant dies before the annuity start date, the beneficiary receives the premiums paid plus interest earned.)
answer
If the annuitant dies before the annuity start date,
question
During periods of inflation, annuitants will experience a decrease in purchasing power of their payments ( The disadvantage of fixed annuities is annuitants could experience a decrease in the purchasing power of their payments over a period of years due to inflation.)
answer
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?
question
1 month
answer
An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments?
question
annuity
answer
Fixed period settlement options are considered to be a form of a(n)
question
Flexible premium deferred annuity
answer
Which of these annuities require premium payments that vary from year to year?
question
On a tax-deferred basis
answer
How do interest earnings accumulate in a deferred annuity?
question
Life annuity certain
answer
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
question
All premiums paid, plus interest, minus any withdrawals and surrender charges
answer
What is the nonforfeiture value of an annuity before annuitization?
question
The annuitant's life expectancy determines the annuity payments (. Annuity payments are based on the annuitant's life expectancy.)
answer
Which of these statements regarding the annuitant is CORRECT?
question
Policyowner (The policyowner is the only one who can surrender an annuity during the accumulation period.)
answer
During the accumulation period, who can surrender an annuity?
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question
After the first premium has been paid
answer
When does an immediate annuity begin making payments?
question
Straight life
answer
Which of these will have the highest monthly payout upon annuitization?
question
Exclusion Ratio
answer
The taxable portion of each annuity payment is calculated using which method?
question
Refund annuity (An annuity that returns the difference between the annuity value and the income payments made to a beneficiary when the annuitant dies during the distribution period is a refund annuity.)
answer
An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity ( a fixed sum of money paid to someone each year, typically for the rest of their life.) value and the income payments already made?
question
Annuitization phase
answer
Which of the following is considered to be the period when the accumulated value in an annuity is paid out?
question
Life income (The settlement option that pays a specified amount to an annuitant, but pays no residual value to a beneficiary is known as life income.)
answer
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
question
Life only (The life only annuity payout option has no additional payouts regardless of when the annuitant dies.)
answer
Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?
question
A minimum of 12 months after date of purchase (A deferred annuity is an annuity contract in which periodic income payments are not scheduled to begin for at least 12 months.)
answer
How soon can the benefit payments begin with a deferred annuity?
question
retirement income
answer
An annuity is primarily used to provide
question
Equity-indexed annuity
answer
Which of the following is an annuity that is linked to a market-related index?
question
S & P 500 (An indexed annuity rate of return is linked to a market index, like the S & P 500.)
answer
Which market index is normally associated with an indexed annuity's rate of return?
question
the premiums paid plus interest earned will be given to the beneficiary ( If the annuitant dies before the annuity start date, the beneficiary receives the premiums paid plus interest earned.)
answer
If the annuitant dies before the annuity start date,
question
During periods of inflation, annuitants will experience a decrease in purchasing power of their payments ( The disadvantage of fixed annuities is annuitants could experience a decrease in the purchasing power of their payments over a period of years due to inflation.)
answer
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?
question
1 month
answer
An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments?
question
annuity
answer
Fixed period settlement options are considered to be a form of a(n)
question
Flexible premium deferred annuity
answer
Which of these annuities require premium payments that vary from year to year?
question
On a tax-deferred basis
answer
How do interest earnings accumulate in a deferred annuity?
question
Life annuity certain
answer
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
question
All premiums paid, plus interest, minus any withdrawals and surrender charges
answer
What is the nonforfeiture value of an annuity before annuitization?
question
The annuitant's life expectancy determines the annuity payments (. Annuity payments are based on the annuitant's life expectancy.)
answer
Which of these statements regarding the annuitant is CORRECT?
question
Policyowner (The policyowner is the only one who can surrender an annuity during the accumulation period.)
answer
During the accumulation period, who can surrender an annuity?