FFL Life Course Annuities

Which type of contract liquidates an estate through recurrent payments?

<> Annuity

<> Whole life insurance

<> Universal life insurance

<> 401(k)

Which of the following is a characteristic of a variable annuity?
<> Underlying equity investments
<> Does not provide a transfer of ownership
<> Does not have surrender chargers
<> Selling this product requires only a life license

Variable annuities may invest premiums in each of the following, EXCEPT:

<> Money Market securities

<> Junk bonds

<> Insurer's corporate business account

<> Common Stock

Which of the following annuities pays benefits on units rather than specific dollar amounts?

<> A Variable annuity

<> A flexible annuity

<> A Single Premium annuity

<> A Deferred annuity

Which of these statements concerning an Individual Straight Life annuity is accurate?
<> Life expectancy of the annuitant is not a factor
<> Payments are made to an annuitant for life
<> The payments are received tax-free
<> Only available to employees of nonprofit charitable, educational, and religious organizations

Which of these is an element of a Single Premium annuity?

<> Fixed income

<> Deferred payment

<> Lump-sum payment

<> Tax-deductible

Equity indexed annuities are invested in which of the following?

<> Savings bond

<> S&P 500

<> Insurer's general account

<> Insured's general account

An immediate annuity consists of a:

<> Single premium

<> variabel premium

<> flexible premium

<> deferred premium

What type of annuity has a cash value that is based upon the performance of its underlying investment funds?

<> Fixed

<> Deferred

<> Variable

<> Flexible

An individual who purchases a Life annuity is given protection against:
<> the risk of living longer than expected
<> Inflation
<> the risk of not having enough retirement income
<> The risk of dying prematurely

Which of the following is NOT included in an annuity contract?

<> Nonforfeiture benefit

<> Beneficiary

<> Free-look period

<> AD&D rider

What is considered to be a characteristic of an immediate annuity?
<> Periodical contributions begin immediately
<> Benefit payments start with 5 years of initial purchase
<> Normally tied to specific equity or stock index
<> Benefit payments start within one payment period of purchase

G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving monthly payments from the annuity. When G dies, the insurer:
<> Must continue to make monthly payments to G’s beneficiary until the difference is paid
<> Does not have to make any further payments
<> Must continue to make monthly payments to G’s beneficiary for the rest of the beneficiary’s life
<> Must pay G’s beneficiary the difference between the amount paid to G and $50,000 in a lump sum

N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities?

<> Installment immediate

<> Fixed Instalment Deferred

<> Flexible-Premium Immediate

<> Flexible Installment Deferred

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

<> Retroactive

<> Universal

<> Deferred

<> Immediate

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n):

<> Life Annuity with Period Certain

<> Cash Refund

<> Instalment Refund

<> Straight Life annuity

P is a forty-year-old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?

<> A deferred annuity

<> An immediate annuity

<> A straight life deferred annuity

<> A straight life annuity