Kentucky Life Insurance Exam Prep| Questions and Verified Answers| 100 % Correct| Grade A (New 2024/ 2025 Update)
QUESTION
Nonforfeiture
... [Show More] Options
Answer:
Three options available by law to policyowners that enable them to recover a policy's cash-value upon surrender of that policy. (1) Cash (2) Reduced Paid-Up Insurance (3) Extended Term Insurance
QUESTION
Immediate Annuities
Answer:
- Can only be funded using the Single Premium payment method
- First income payment is made one payout interval from the date of annuity purchase
- Typically designed to provide income immediately upon retirement
- In exchange for a lump sum premium the company pays them a monthly income for the rest of their life.
QUESTION
Deferred Annuities
Answer:
- Can be funded through either the single premium payment or through periodic premium payments
- Begin payout at sometime in the future
QUESTION
Single Premium Annuity
Answer:
An Annuity purchased with one lump-sum payment, generally with after tax dollars, annuity is paid in a set amount in period
QUESTION
Level Premium Annuity
Answer:
Annuitant agrees to make monthly payments in level amounts into the annuity during the accumulation period.
QUESTION
Flexible Premium
Answer:
A policy feature that allows the policyholder to vary premium payments in the amount and/or timing.
QUESTION
Premium Determination
Answer:
Annuitant's age
Annuitant's sex
Assumed interest rate
Income amount and payment guarantee
Loading for company expenses
QUESTION
Accumulation Units
Answer:
A variable annuity contract owner's interest in the separate account prior to annuitization, bought by the net purchase payment
QUESTION
Annuity Unit
Answer:
The number of annuity units denotes the share of the funds an annuitant will receive from a variable annuity account after the accumulation period ends and benefits begin. A formula is used to convert accumulation units to annuity units. Fixed number in amount, but payment varies.
QUESTION
Life Annuity (no refund)
Answer:
Provides a life income to the annuitant only while the annuitant remains alive
QUESTION
Refund Life Annuity
Answer:
Life annuity payout option in which the annuitant receives income for life and the beneficiary will receive the balance of premiums plus interest minus benefits already paid when the annuitant dies. Two types: cash refund and installment refund.
QUESTION
Life Annuity with Period Certain
Answer:
A Life Annuity that guarantees to provide income payments for a minimum period of time or life. Payments will continue to a beneficiary should the annuitant die during the specified period.
QUESTION
Joint Life and Survivorship Annuity
Answer:
An annuity under which payments
are made to two annuitants, with the
survivor continuing to receive payments
after the first annuitant dies.
QUESTION
Joint Life Annuity
Answer:
Payments continue to two annuitants for only as long as both live. On the death of either one, payments stop.
QUESTION
Tax-Sheltered Annuities
Answer:
Limited exclusively for employees of religious, charity, or educational groups.
• Also called 403(b) plans
• Accumulation payments often come from voluntary salary reductions
• The annuitant may have an individual account contract [Show Less]