Primerica Life Insurance Exam | 2023/ 2024 Newly Updated!!! (Questions and 100% Verified Answers)
1. The annuity owner dies while the annuity is
... [Show More] still in the accumulation stage. Which of the following is TRUE?
Answer: The beneficiary will receive the greater of the money paid into the annuity or the cash value.
2. Which of the following best describes what the annuity period is?
Answer: The period of time during which accumulated money is converted into income payments
3. When an annuity is written, whose life expectancy is taken into account?
Answer: Annuitant
4. Which of the following is another term for the accumulation period of an annuity?
Answer: Pay-in period
5. The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which is true?
Answer: The annuitant must be a natural person.
6. If the annuitant dies during the accumulation period, who will receive the annuity benefits?
Answer: The beneficiary
7. In an annuity, the accumulated money is converted into a stream of income during which time period?
Answer: Annuitization period
8. Which of the following is TRUE regarding the accumulation period of an annuity?
Answer: It is a period of time during which the payments into the annuity grow tax deferred
9. Fixed annuities provide all of the following EXCEPT
Answer: Hedge against inflation
10. Which of the following is true regarding variable annuities?
Answer: The annuitant assumes the risk on investment
11. Equity indexed annuities
Answer: Seek higher returns
12. The minimum interest rate on an equity indexed annuity is often based on
Answer: An index like Standard & Poor's 500
13. Why is an equity indexed annuity considered to be a fixed annuity?
Answer: It has a guaranteed minimum interest rate
14. A man purchased a $90,000 annuity with a single premium and began receiving payments 2 months after that. What type of annuity is it?
Answer: Immediate
15. Which of the following is TRUE for both equity and annuities and fixed annuities?
Answer: They have a guaranteed minimum interest rate
16. Which of the following is NOT true regarding Equity Indexed Annuities?
Answer: They earn lower interest rates than fixed annuities
17. Which of the following is TRUE for both equity indexed annuities and fixed annuities?
Answer: They have a guaranteed minimum interest rate
18. An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type is it? [Show Less]