For an annuity, the accumulation period is the segment of time in which contributions to the investment are made regularly. The length of the accumulation period may be specified at the time the account is created, or it may depend on when you elect to withdraw funds based on your retirement timeline.
Which of the following is not true regarding an annuitant?
Which of the following is NOT true regarding the annuitant? The annuitant cannot be the same person as the annuity owner. A deferred annuity is surrendered prior to annuitization.
What occurs during the accumulation period of an annuity quizlet?
It would not occur in a deferred annuity – The “accumulation period” is the period of time over which the annuity owner makes payments (premiums) into an annuity. This is the period of time during which the payments earn interest and grow tax deferred (which would be the case in a deferred annuity).
Which of the following is another term for the accumulation period of an annuity quizlet?
ADuring this period of time the annuity payments grow interest tax deferred. BIt is also referred to as the accumulation period. CIt is the period of time during which the annuitant makes premium payments into the annuity.
Which of the following is true regarding an annuity?
The correct answer is c) An annuity due is an equal stream of cash flows paid or received at the beginning of each period.
What is accumulation annuity?
Your accumulation annuity is an investment product that accumulates value by adding interest to the investment. The interest rates may typically be guaranteed for periods of 1, 3, 5 and up to 10 years. Assuris’ protection applies to your accumulation annuity, regardless of the term.
Which of the following is not true regarding the life guaranteed minimum annuity settlement option?
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? It does not guarantee that the entire principal amount will be paid out. They invest on a more aggressive basis aiming for higher returns.
Which of the following is not considered a rebate?
Which of the following is not considered a rebate? Various payment or budget plans are not considered rebating. Rebating is an illegal activity.
Which of the following is true regarding a hearing upon the non renewal of a producer’s license?
Which of the following is true regarding a hearing upon the nonrenewal of a producer’s license? The hearing must be held within 30 days of the written demand.
Which of the following best describes taxation during the accumulation period of an annuity?
Which of the following best describes taxation during the accumulation period of an annuity? Taxes are deferred.
What statement is not true regarding a straight life policy?
Which statement is NOT true regarding a Straight Life policy? Its premium steadily decreases over time, in response to its growing cash value. Which Universal Life option has a gradually increasing cash value and a level death benefit? Which of the following best defines target premium in a universal life policy?
Who can surrender an annuity during the accumulation period?
(The policyowner is the only one who can surrender an annuity during the accumulation period.)
Which of the following is another term for the accumulation period?
Pay in period *The accumulation period is also known as the pay-in period. It is the period of time over which the annuitant makes payments (premiums) into an annuity.
What is true regarding the guaranteed insurability rider?
The Guaranteed Insurability Benefit Rider guarantees the policy owner the right to purchase additional permanent life insurance policies without evidence of insurability. On each option date specified in the contract, Nationwide will permit the purchase of an additional life insurance policy.
Which of the following riders would not cause the death benefit to increase?
Which of the following riders would NOT cause the Death Benefit to increase? Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the payor is disabled or dies.
Which of the following is true of an equity indexed annuity?
which of the following is true for both equity indexed annuities and fixed annuities? They have a guaranteed minimum interest rate. for 20 years or until death, whichever occurs first.
What is annuity period?
Annuity Period, Defined
The annuity period is the time when an annuitant (person who owns the annuity) starts to receive payments. This is generally in retirement, and payments can come monthly, quarterly or annually.
Which of the following is called an annuity?
An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates.
