Insurance Based Products

Question 1

Fixed Annuity

Answer 1

A Fixed Annuity is NOT a security. (So a seminar dealing exclusively with them cannot result in securities fraud.

Question 2

Variable Annuities - 1

Answer 2

Variable Annuities are generally NOT suited for short term investing becuase of their surrender charges.

Question 3

Variable Annuities - 2

Answer 3

Variable Annuities are a Tax Deferred way to participate in equities market.

Question 4

Variable Annuities - 3

Answer 4

Variable Annuities typically carry higher expenses than mutual funds with the same objectives.

Question 5

Index Annuities

Answer 5

Index Annuities have a participation rate that is usually limited by a cap

Question 6

Term Insurance

Answer 6

Term Insurance is pure protection and has no cash value. The premium increases upon renewal.

Question 7

Whole Life

Answer 7

*Whole Life** builds guaranteed cash value with Policy Loans

Question 8

Universal Life

Answer 8

Universal Life has flexible premiums – Insufficient payments could cause policy lapse.

Question 9

Variable Life - 1

Answer 9

Varibale Life has a separate account, a guaranteed minimum death benefit, and a cash value is NOT guaranteed. 75% of cash value can be borrowed after 3 years

Question 10

Variable Life - 2

Answer 10

Variable Life has an exhange privilege to a new permanent plan of life insurance within first 24 months