PDF Variable Annuities: What You Should Know - SEC B) Life annuity. Before the contract is annuitized, your client, currently age 60, withdraws some funds for personal purposes. The growth portion is subject to a 10% penalty. In March, the actual net return to the separate account was 8%. Reference: 12.3.1 in the License Exam. C) II and IV. Variable annuities are designed to combat inflation risk. II. B)Life annuity with period certain. C)Money market fund. D) Any time before the accumulation period. B) payment guarantee. D) not suitable because a lifetime income rider is only for someone who is already retired. It may be used by nongovernmental . IBM Noida, Uttar Pradesh, India1 month agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. D)A 10% penalty plus the payment of ordinary income tax on funds withdrawn in excess of the owner's basis. Based only on these facts, the variable annuity recommendation is U.S. Securities and Exchange Commission. $63,000 b.$51,000 c. $18,000 d.$6,000. C)Growth mutual funds D) the number of annuity units becomes fixed when the contract is annuitized. While variable annuities have greater potential for earnings, since their interest rate rises and falls with their underlying investments, they can lose money. C)earnings only and taxable The time period depends on how often the income is to be paid. Deal with mathematic Math is all about solving equations and finding the right answer. D)II and III. Both products typically have a wide range of options across equities, bonds and money market instruments. The number of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. Financial Sales Professional Job in Fort Worth, TX at New York Life D) 4200. D)money market funds. Reference: 12.1.4.1 in the License Exam. Trends Networks and Critical Thinking Module 2 's dividend yield was % last year. Once the contract is annuitized, monthly payments to the customer are: Therefore, variable annuities must be registered with the state insurance commission and the Securities and Exchange Commission. A life with period certain contract guarantees payments for a specified number of years to a named beneficiary if the annuitant dies during that time. Complete a blank sample electronically to save yourself time and money. Based only on these facts, the variable annuity recommendation is A) I and III. I. All of the following are characteristics of Variable Annuity contracts EXCEPT The possibility of higher returns and greater income than fixed annuities, but there's also a risk that the account will fall in value A There are no surrender fees B Guaranteed death benefit C Tax deferred growth D Training Explanations Policyholders . In this case, the investor is taking a lump-sum distribution before reaching age 59- and must pay an additional 10% penalty on the taxable amount. If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. C) Mutual fund portfolio consisting of blue chip stocks Chapter 7: Annuities Flashcards | Quizlet . If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. B)reevaluate whether the recommendation for the VA contract is still suitable based on the clients proposed funding of the investment. *The minimum guaranteed death benefit is provided by that portion of the payment invested in the insurance company's general account. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. IV. The noble relatives of the Count d'Horn absolutely blocked up the ante-chambers of the regent, praying for mercy on the misguided youth, and alleging that he was insane . D)II and III. C)the invested money will be professionally managed according to the issuers' investment objectives. There are also immediate annuities, which begin paying income right away. All of the following statements regarding variable annuities are true EXCEPT: The downside was that the buyer was exposed to market risk, which could result in losses. C) The investor's concerns about taxes. Once a variable annuity has been annuitized: This role is also eligible for annual short-term incentive compensation. B) I and III. A) The fact that the annuity payment may increase or decrease. Refinancing a home to draw out equity has been identified by FINRA as an abusive sales tactic regarding the sales of VAs. He wants to ensure that the client, in addition to meeting suitability requirements, is aware of certain variable annuity contract characteristics. A) the investment portfolio is managed professionally. If this client is in the payout phase, how would his April payment compare to his March payment? In a variable annuity contract, the provision that guarantees the annuitant payments for life is called the: && \hspace{10pt}\text{Group insurance} & \underline{45,630}\\ All of the following characteristics are shared by both a mutual fund and a variable annuity's separate account EXCEPT: A variable annuity is both an insurance and a securities product. And, unlike a fixed annuity, variable annuities do not provide any guarantee that you will earn a return on your investment. B) the number of annuity units is fixed, and their value remains fixed. A variable annuity is a combination of 2 products: an insurance contract and a mutual fund. He makes the following four statements, all of which are true EXCEPT A) partially a tax-free return of capital and partially taxable. The Project Gutenberg eBook of Memoirs of Extraordinary Popular B) During the accumulation period. Question #47 of 48Question ID: 606813 A) number of annuity units. The investor has already paid tax on the contributions but the earnings have grown tax-deferred. C) II and IV. d. Each month the payment will increase, decrease, or remain the same as the previous month's payment . A variable annuity is a long term investment issued by an insurance company that can help you grow your money, take income in retirement and pass on your wealth. Do homework Doing homework can help you learn and understand the material covered in class. For this potential advantage, the investor, rather than the insurance company, assumes the investment risk. C) taxed as ordinary income only to the extent of earnings. *If the separate account of a variable annuity with an AIR of 4% had actual net earnings of 8% in March, the April payment will be higher than the March payment. A) The fact that the annuity payment may increase or decrease. B)II and III. Cashing out life insurance policies or VAs where steep surrender charges are likely to exist, particularly in the earlier years of those contracts, is also considered abusive. *Only variable annuities have payout plans that provide the client income for life. The accumulation unit's value is used to calculate the total value of the account. C) II and III. None of the other investments listed here offer tax-deferred growth. *Under the mortality guarantee, the insurance company assumes mortality risk by guaranteeing payments for life, though the amount of each payment is not guaranteed. Dividing the funds available so as to fund 2 separate contracts, whether they be joint with last survivor or life income, would not be cost efficient for spouses. If an investor has a fixed-annuity contract with an insurance company, which of the following risks is assumed by the investor? A) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices. A)a lifetime withdrawal benefit (LWB) or lifetime income benefit is generally in the form of a rider attached to the contract which will come at a cost to the annuitant Question #24 of 48Question ID: 606806 An individual retirement annuity is an investment vehiclesimilar to an individual retirement accountthat is offered by insurance companies. C) Life annuity with period certain. I. *Accumulation units represent units of ownership in a life insurance company's separate account when the contract is in the accumulation stage. This factor is used to establish the dollar amount of the first annuity payment. D)Any tax due is deferred. D)I and III. Your customer in his early 30s has received a modest inheritance from a relative. This annuity is nonqualified, which means the client has paid for it with after-tax dollars and has a basis equal to the original $29,000 investment. A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. C)suitable due to the death benefit features of a variable annuity. B) accumulation units. Prudential Retirement Security Annuity VI is a group variable annuity (GVA) issued by Prudential Retirement Insurance and Annuity Company (PRIAC) which utilizes a Separate Account offered Question #45 of 48Question ID: 606795 D) I and IV. A)contact the issuer of the clients existing VA contract to facilitate the clients surrender of the contract. B)unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. B) It will be lower. *When money is deposited into the annuity, it is purchasing accumulation units. The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. C) insurance companies keep variable annuity funds in separate accounts from other insurance products. Reference: 12.3.3 in the License Exam. A guaranteed lifetime annuity promises to pay the owner an income for the rest of their life. For a retired person, which of the following investments would provide the greatest protection against inflation? On any device & OS. If the annuitant dies during the accumulation period, his/her beneficiary will receive the promised annuity payments. Annuity units are units of ownership when the contract is in the payout stage. A) I and II. C) Corporate bonds. These contracts come with high surrender charges. D) 4500. B) I and III. C) none of these. What are the different types of annuities? | III An accumulation unit in a variable annuity contract is: The tax on this is $2,800 ($10,000 x 28%). What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the board of trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolution of the trust c. for distributing income and capital gains. The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the Board of Trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolutions of the trust for distributing income and capital gains. If one purchases an annuity for a set price, the issuing company would invest the funds and hold them until they are supposed to be disbursed, generally based on the owner's age. A)I and IV. A) Age 56, available cash to invest, makes the maximum retirement plan contributions to an existing IRA and 401(k) plan A registered representative recommends a variable annuity with an income rider to a client. D)I and III. Over the past five years, 's dividend yield has averaged % per year. D)I and IV, Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. The annuitant may not contribute and withdraw simultaneously. The fixed payment that the annuitant receives loses purchasing power over time as a result of inflation. Because this is not guaranteed, the policyowner bears the investment risk. B)FINRA. Question #12 of 48Question ID: 606814 A variable annuity is a security and must be registered with the SEC, not FINRA. a variable annuity does not guarantee payments for life. Reference: 12.3.3 in the License Exam. A) Life-only annuity PDF Prudential IncomeFlex Target Vanguard Balanced Index Fund Final answer. Kingsthorpe Cemetery Records, Articles A
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a variable annuity has which of the following characteristics

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If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding: When money is deposited into the annuity, it is purchasing accumulation units. PDF Variable Annuities: What You Should Know - SEC B) Life annuity. Before the contract is annuitized, your client, currently age 60, withdraws some funds for personal purposes. The growth portion is subject to a 10% penalty. In March, the actual net return to the separate account was 8%. Reference: 12.3.1 in the License Exam. C) II and IV. Variable annuities are designed to combat inflation risk. II. B)Life annuity with period certain. C)Money market fund. D) Any time before the accumulation period. B) payment guarantee. D) not suitable because a lifetime income rider is only for someone who is already retired. It may be used by nongovernmental . IBM Noida, Uttar Pradesh, India1 month agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. D)A 10% penalty plus the payment of ordinary income tax on funds withdrawn in excess of the owner's basis. Based only on these facts, the variable annuity recommendation is U.S. Securities and Exchange Commission. $63,000 b.$51,000 c. $18,000 d.$6,000. C)Growth mutual funds D) the number of annuity units becomes fixed when the contract is annuitized. While variable annuities have greater potential for earnings, since their interest rate rises and falls with their underlying investments, they can lose money. C)earnings only and taxable The time period depends on how often the income is to be paid. Deal with mathematic Math is all about solving equations and finding the right answer. D)II and III. Both products typically have a wide range of options across equities, bonds and money market instruments. The number of annuity units becomes fixed when the contract is annuitized; it is the value of each unit that fluctuates. Financial Sales Professional Job in Fort Worth, TX at New York Life D) 4200. D)money market funds. Reference: 12.1.4.1 in the License Exam. Trends Networks and Critical Thinking Module 2 's dividend yield was % last year. Once the contract is annuitized, monthly payments to the customer are: Therefore, variable annuities must be registered with the state insurance commission and the Securities and Exchange Commission. A life with period certain contract guarantees payments for a specified number of years to a named beneficiary if the annuitant dies during that time. Complete a blank sample electronically to save yourself time and money. Based only on these facts, the variable annuity recommendation is A) I and III. I. All of the following are characteristics of Variable Annuity contracts EXCEPT The possibility of higher returns and greater income than fixed annuities, but there's also a risk that the account will fall in value A There are no surrender fees B Guaranteed death benefit C Tax deferred growth D Training Explanations Policyholders . In this case, the investor is taking a lump-sum distribution before reaching age 59- and must pay an additional 10% penalty on the taxable amount. If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. C) Mutual fund portfolio consisting of blue chip stocks Chapter 7: Annuities Flashcards | Quizlet . If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. B)reevaluate whether the recommendation for the VA contract is still suitable based on the clients proposed funding of the investment. *The minimum guaranteed death benefit is provided by that portion of the payment invested in the insurance company's general account. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. IV. The noble relatives of the Count d'Horn absolutely blocked up the ante-chambers of the regent, praying for mercy on the misguided youth, and alleging that he was insane . D)II and III. C)the invested money will be professionally managed according to the issuers' investment objectives. There are also immediate annuities, which begin paying income right away. All of the following statements regarding variable annuities are true EXCEPT: The downside was that the buyer was exposed to market risk, which could result in losses. C) The investor's concerns about taxes. Once a variable annuity has been annuitized: This role is also eligible for annual short-term incentive compensation. B) I and III. A) The fact that the annuity payment may increase or decrease. Refinancing a home to draw out equity has been identified by FINRA as an abusive sales tactic regarding the sales of VAs. He wants to ensure that the client, in addition to meeting suitability requirements, is aware of certain variable annuity contract characteristics. A) the investment portfolio is managed professionally. If this client is in the payout phase, how would his April payment compare to his March payment? In a variable annuity contract, the provision that guarantees the annuitant payments for life is called the: && \hspace{10pt}\text{Group insurance} & \underline{45,630}\\ All of the following characteristics are shared by both a mutual fund and a variable annuity's separate account EXCEPT: A variable annuity is both an insurance and a securities product. And, unlike a fixed annuity, variable annuities do not provide any guarantee that you will earn a return on your investment. B) the number of annuity units is fixed, and their value remains fixed. A variable annuity is a combination of 2 products: an insurance contract and a mutual fund. He makes the following four statements, all of which are true EXCEPT A) partially a tax-free return of capital and partially taxable. The Project Gutenberg eBook of Memoirs of Extraordinary Popular B) During the accumulation period. Question #47 of 48Question ID: 606813 A) number of annuity units. The investor has already paid tax on the contributions but the earnings have grown tax-deferred. C) II and IV. d. Each month the payment will increase, decrease, or remain the same as the previous month's payment . A variable annuity is a long term investment issued by an insurance company that can help you grow your money, take income in retirement and pass on your wealth. Do homework Doing homework can help you learn and understand the material covered in class. For this potential advantage, the investor, rather than the insurance company, assumes the investment risk. C) taxed as ordinary income only to the extent of earnings. *If the separate account of a variable annuity with an AIR of 4% had actual net earnings of 8% in March, the April payment will be higher than the March payment. A) The fact that the annuity payment may increase or decrease. B)II and III. Cashing out life insurance policies or VAs where steep surrender charges are likely to exist, particularly in the earlier years of those contracts, is also considered abusive. *Only variable annuities have payout plans that provide the client income for life. The accumulation unit's value is used to calculate the total value of the account. C) II and III. None of the other investments listed here offer tax-deferred growth. *Under the mortality guarantee, the insurance company assumes mortality risk by guaranteeing payments for life, though the amount of each payment is not guaranteed. Dividing the funds available so as to fund 2 separate contracts, whether they be joint with last survivor or life income, would not be cost efficient for spouses. If an investor has a fixed-annuity contract with an insurance company, which of the following risks is assumed by the investor? A) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices. A)a lifetime withdrawal benefit (LWB) or lifetime income benefit is generally in the form of a rider attached to the contract which will come at a cost to the annuitant Question #24 of 48Question ID: 606806 An individual retirement annuity is an investment vehiclesimilar to an individual retirement accountthat is offered by insurance companies. C) Life annuity with period certain. I. *Accumulation units represent units of ownership in a life insurance company's separate account when the contract is in the accumulation stage. This factor is used to establish the dollar amount of the first annuity payment. D)Any tax due is deferred. D)I and III. Your customer in his early 30s has received a modest inheritance from a relative. This annuity is nonqualified, which means the client has paid for it with after-tax dollars and has a basis equal to the original $29,000 investment. A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. C)suitable due to the death benefit features of a variable annuity. B) accumulation units. Prudential Retirement Security Annuity VI is a group variable annuity (GVA) issued by Prudential Retirement Insurance and Annuity Company (PRIAC) which utilizes a Separate Account offered Question #45 of 48Question ID: 606795 D) I and IV. A)contact the issuer of the clients existing VA contract to facilitate the clients surrender of the contract. B)unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. B) It will be lower. *When money is deposited into the annuity, it is purchasing accumulation units. The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. C) insurance companies keep variable annuity funds in separate accounts from other insurance products. Reference: 12.3.3 in the License Exam. A guaranteed lifetime annuity promises to pay the owner an income for the rest of their life. For a retired person, which of the following investments would provide the greatest protection against inflation? On any device & OS. If the annuitant dies during the accumulation period, his/her beneficiary will receive the promised annuity payments. Annuity units are units of ownership when the contract is in the payout stage. A) I and II. C) Corporate bonds. These contracts come with high surrender charges. D) 4500. B) I and III. C) none of these. What are the different types of annuities? | III An accumulation unit in a variable annuity contract is: The tax on this is $2,800 ($10,000 x 28%). What type of annuity has a cash value that is based upon the performance of it's underlying investment funds? The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the board of trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolution of the trust c. for distributing income and capital gains. The owner of a variable annuity has all of the following rights EXCEPT the right to vote: a. for the Board of Trustees b. to change the separate account's investment objective c. for distributing income and capital gains d. for dissolutions of the trust for distributing income and capital gains. If one purchases an annuity for a set price, the issuing company would invest the funds and hold them until they are supposed to be disbursed, generally based on the owner's age. A)I and IV. A) Age 56, available cash to invest, makes the maximum retirement plan contributions to an existing IRA and 401(k) plan A registered representative recommends a variable annuity with an income rider to a client. D)I and III. Over the past five years, 's dividend yield has averaged % per year. D)I and IV, Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. The annuitant may not contribute and withdraw simultaneously. The fixed payment that the annuitant receives loses purchasing power over time as a result of inflation. Because this is not guaranteed, the policyowner bears the investment risk. B)FINRA. Question #12 of 48Question ID: 606814 A variable annuity is a security and must be registered with the SEC, not FINRA. a variable annuity does not guarantee payments for life. Reference: 12.3.3 in the License Exam. A) Life-only annuity PDF Prudential IncomeFlex Target Vanguard Balanced Index Fund Final answer.

Kingsthorpe Cemetery Records, Articles A

a variable annuity has which of the following characteristics