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WorksheetsAnnuities
Total questions: 10
Worksheet time: 6mins
What best explains the GMWB Rider?
Any earnings or interest may accumulate tax-free until the money is withdrawn.
You can receive income payments, no matter how long you live or whether you have collected your original investment plus earnings.
Tax-preferred retirement accounts, such as IRAs and 401(k)s, there is no limit to the amount of money you can contribute to your annuities.
The rider that permits you to designate a beneficiary or guarantee a specific payout amount, even if you die early.
An optional rider that ensures a steady stream of retirement income by allowing you to withdraw a specific percentage of funds each year, regardless of market conditions.
(a)
If an investor is risk averse then he will purchase which kind of annuity contract?
Fixed Annuity
Variable Annuity
Indexed Annuity
Hybrid Annuity
You purchase a variable annuity with an initial purchase payment of $500,000. You allocate 30% of that purchase payment to a bond fund, and 70% to a stock fund. Over the following year, the stock fund has a 20% return, and the bond fund has a 10% return. At the end of the year, your account has a value will be (a)
This image explain which type of annuity?
Fixed annuity
Variable Annuity
Indexed Annuity
Index-Variable Annuity
Company Midland National indexed annuity might pay the investor 80% of the annual increase in the S&P 500, guaranteeing a minimum of 5% per year and a maximum of 15%. So if the index is up 20% in a year, the annuity will pay ___.
20
16
5
15
"Earnings or interest may accumulate tax-free until the money is withdrawn"
This statement is best explained by which term?
Tax Advantages
Limitless-Contribution
Probate-Free
Tax-Deferred
(a) allows a buyer to cancel the contract without incurring a surrender charge.
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Which is the correct explanation of Variable Annuity?
The insurance company promises you a minimum rate of interest and a fixed amount of periodic payments.
The insurance company credits you with a return that is based on a stock market index
The insurance company allows you to direct your annuity payments to different investment options, usually mutual funds.
Your payout may come either as one lump-sum payment or as a series of payments over time.
