Traditional License Review Module 7 Quiz

An annuity plan

• offers life insurance protection

• offers the waiver of premium benefit

• is the same as endowment plan

• is a purchase of income

The person who purchases the annuity plan is called the

• assignor

• owner

• insured

• annuitant

An “immediate annuity” is

• a kind of regular annual savings arrangement to provide a pension for life with no life coverage

• a single premium whole life policy

• an arrangement where a person can pay a life insurance company a sum of money in return for a pension for life

• an on-time payment for a pension to start a pre-determined date.

An “immediate deferred annuity” is

• An “immediate deferred annuity” is

• a single premium whole life policy

• an arrangement where a person can pay a life insurance company a sum of money in return for a pension for life

• an on-time payment for a pension to start a pre-determined date

An “retirement annuity” is

• a kind of regular annual savings arrangement to provide a pension for life with no life coverage

• a single premium whole life policy

• an arrangement where a person can pay a life insurance company a sum of money in return for a pension for life

• an on-time payment for a pension to start a pre-determined date

A widow, the beneficiary of a life policy tells you that she wants all the money that she can get now. Which of the following do you recommend?

• interest option

• fixed income option

• fixed period option

• life annuity option

• None of the above