insurer

An annuity is a financial product designed to provide:

• One-time lump sum payment
• Regular payments over a specified period of time
• No financial benefits
• Irregular payments over a specified period of time

Which of the following is true about fixed annuities?

• Fixed annuities offer a guaranteed income stream with a fixed interest rate.
• Fixed annuities do not provide a guaranteed income stream.
• Fixed annuities are not suitable for retirement planning.
• Fixed annuities have variable interest rates.

A key characteristic of a variable annuity is that:

• Variable annuities have fixed interest rates
• Variable annuities offer a range of investment options within the contract.
• Variable annuities do not offer any investment choices
• Variable annuities are not tax-deferred

An immediate annuity begins payments:

• Immediately after the initial premium is paid

• after a waiting period
• at the end of the year
• upon reaching a certain age

The period during which premiums are paid into an annuity and accumulate interest is called the:

• Investment phase
• Growth phase
• Accumulation phase
• Savings period

A rider that guarantees that the beneficiary will receive payments for at least a certain number of years, even if the annuitant dies early, is called a:

• Guaranteed Minimum Income Benefit Rider
• Lifetime Rider
• Period Certain Rider
• Death Benefit Rider

A rider that guarantees a minimum amount of income regardless of the annuity's investment performance is known as a:

• Guaranteed Minimum Income Benefit (GMIB)
• Guaranteed Minimum Accumulation Benefit (GMAB)
• Guaranteed Minimum Withdrawal Benefit (GMWB)
• Guaranteed Minimum Investment Benefit (GMIB)

If an annuitant dies during the accumulation phase, the beneficiary typically receives the:

• monthly income for life
• partial refund of premiums paid
• Greater of the account value or the total premiums paid

• double the accumulated value

The earnings portion of annuity withdrawals is considered:

• Non-taxable income
• Tax-deductible income
• Tax-exempt income
• Taxable as ordinary income

When money is moved from one annuity to another annuity in a 1035 exchange, the transaction is:

• Taxable
• Not taxable

• Partially tax-free
• Subject to penalty