Annuities

Question 1

Identify the ways that you can purchase an annuity

Answer 1

1. Installment premium
2. Single premium
3. Flexibile premium

Question 2

Identify your payment options for annuities

Answer 2

1. Immediate
2. Deferred

Question 3

Identify how the funds in an annuity can be invested.

Answer 3

1. Variable
2. Fixed
3. Equity-Indexed

Question 4

Identify the forms of payment for an annuity

Answer 4

1. Withdrawals (full, partial, or systematic)
2. Life
3. Annuity certain

Question 5

Identify how annuity coverage works for multiple lives covered

Answer 5

Can be either joint life or joint & surivor, which can be Full, 2/3 or 1/3

Question 6

Identify the guaranteed minimums for annuity refunds

Answer 6

1. Lump Sum
2. Installment

Question 7

Tax treatment of annuities

Answer 7

LIFO

Question 8

Withdrawal penalty for annuities

Answer 8

10% prior to 59.5

Question 9

Surrender penalty for annuities (typically)

Answer 9

7-10 years

Question 10

Section 1035

Answer 10

Used to defer current taxation in the exchange of life insurance and annuity contracts

Question 11

The 1035 Exchange Period, from most flexible to least flexible

Answer 11

1. Life Insurance
2. Endowment
3. Annuity
4. Qualified LTCi