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XCEL Life, Accident, and Health Insurance FOR CALIFORNIA > ANNUITIES > Flashcards

ANNUITIES Flashcards

1
Q

What payout option provides payments for annuitant’s whole life, but will cease at death?

A

the straight-life payout option

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2
Q

what annuity’s growth is dependent on the performance of securities in a separate account?

A

a variable annuity

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3
Q

T or F: an annuity contract uses different mortality tables than a life insurance policy

A

true

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4
Q

what is another name for the annuity accumulation phase?

A

the pay-in phase

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5
Q

traditional contract assets are placed in the insurance company’s _____ account

A

company’s general account

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6
Q

the ____ rate is the percentage of the gain kept by an insurer, based on the overall return of an index.

A

the participation rate

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7
Q

T or F: A flexible premium deferred annuity is designed for future income.

A

true

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8
Q

what is the risk of the straight-life annuity payout option?

A

there is no beneficiary payout after the annuitant’s death

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9
Q

annuity withdrawals prior to age 59 1/2 will be subject to a ___ % IRS penalty plus ____ of earnings.

A

10% IRS penalty plus federal taxation of earnings.

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10
Q

what annuity provides a monthly income the varies depending on market performance?

A

a variable annuity

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11
Q

what is another name for the annuity payout period?

A

the annuity phase

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12
Q

what type of annuity has no accumulation period?

A

a lump-sum or single premium annuity

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13
Q

the annuity benefit of a woman would be ____ than a man’s because a woman is expected to _____

A

the annuity benefit of a woman would be less than a man’s because a woman is expected to liver longer.

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14
Q

interest earned with a deferred annuity grows on a ___ basis

A

tax-deferred basis

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15
Q

annuity premiums may be paid as a _____, or on a ___ basis

A

lump sum, or on a periodic basis

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16
Q

which annuity payout option pays the annuitant for life with no survivorship benefit?

A

the straight or pure life annuity payout

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17
Q

what benefit does the installment refund option on an annuity certain payout allow the beneficiary

A

to continue to receive the remainder for the monthly income benefits

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18
Q

identify the acronym: SPA

A

single premium annuity

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19
Q

T or F: joint and last survivor payouts will cease after the first annuitant dies.

A

False. The joint and last survivor payouts continue payment until the last surviving annuitant dies.

20
Q

which annuity option does not guarantee an income for life, but rather an income for a predetermined number of years?

A

the annuity certain option

21
Q

describe a flexible premium deferred annuity

A

flexible payments (subject to monthly minimum), with tax-deferred growth until later withdrawn (e.g. at retirement)

22
Q

periodic annuity payments may be _____ or _____

A

level for flexible

23
Q

what type of annuity is designed to pay income at a later date?

A

deferred annuity

24
Q

an annuitant with a straight-life annuity dies after 9 years. How many years of benefit will his beneficiary receive?

A

$0. straight-life payments cease on the death of the annuitant.

25
Q

which annuity provides a guaranteed return–fixed or variable?

A

fixed annuities

26
Q

what factors affect the annuity payout amount?

A

interest rates, contribution amounts, and payout option selected

27
Q

annuitization is described as the ____ of an estate or pool of money

A

systematic liquidation

28
Q

which annuity allows for stock market appreciation with guaranteed downside protection?

A

an equity-indexed annuity

29
Q

a single premium annuity may also be called a ____ annuity

A

lump-sum annuity

30
Q

the cash refund option of an annuity certain payouts provides the beneficiary a ___ refund of remaining benefits

A

lump-sum

31
Q

what annuity payout option pays income to more than one party and stops upon death of any party listed on the contract?

A

the joint life option

32
Q

all variable contract assets are placed in the insurance company’s _____ account

A

company’s separate account

33
Q

a client dies soon after annuitizing with a straight-life payout option. is there a death benefit to a beneficiary?

A

no, the contract is based on the annuitant’s life only

34
Q

an immediate annuity must begin making income payments within ___ days of the initial deposit.

A

30 days

35
Q

the contribution phase of an annuity is called the ____ period.

A

accumulation period

36
Q

an annuity is designed to protect a person against ___ his income.

A

outliving

37
Q

currently, ____ companies are the only type of company that may sell annuities

A

insurance companies

38
Q

T or F: the annuity owner and the annuitant do not need to be the same person

A

True, an annuity can be purchased for someone other than the owner

39
Q

a flexible premium annuity usually requires a ___ monthly contribution

A

minimum monthly contribution

40
Q

at annuitization (payout), accumulation units are exchanged for ___ unitys

A

annuity units

41
Q

T or F: an annuity with a 30-pay certain annuity payout guarantees at least 20 years of payments will occur.

A

True, at least 20 years of payment are guaranteed to the annuitant, the beneficiary, or both

42
Q

which annuity provides a fixed, guaranteed minimum rate of return?

A

a fixed annuity

43
Q

withdrawls from an annuity may not take place prior to age ___ without penalty

A

59 1/2

44
Q

the ____ rate is the percentage of the gain by an insurer, based on the overall return of an index?

A

participation rate

45
Q

an annuitant with a 20 - year certain annuity dies after 7 years, how many years of benefits will a beneficiary receive?

A

the beneficiary will receive the remaining 13 of the 20 years

46
Q

T or F: the annuity owner and the annuitant do not need to be the same person

A

true, an annuity can be purchased for someone other than the owner

47
Q
A

XCEL Life, Accident, and Health Insurance FOR CALIFORNIA (17 decks)

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