Exam (elaborations)
ANNUITY – WEBCE EXAM QUESTIONS AND ANSWERS 2024
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ANNUITY – WEBCE EXAM QUESTIONS AND ANSWERS 2024
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ANNUITY – WEBCE EXAMWhat are the two fundamental factors that separate one type of annuity from
another? - ANSWERS-1) When the Contract is Scheduled. (Immediate and
Deferred Annuities)
2) How the Contract's funds are invested. (Fixed, Indexed, and Variable Annuities)
What are Immediate Annuities often referred to as? - ANSWERS-SPIAs - Single
Premium Immediate Annuities
What type of income streams can SPIAs generate? - ANSWERS-- Fixed and
unchanging
-Variably (which can increase or decrease according to the performance of
underlying investment accounts)
Fixed or Variable, the duration of the immediate annuity income stream is
guaranteed by the insurer.
What type of Annuity is designed to accumulate funds for the long-term? -
ANSWERS-Deferred Annuities
, The period during which funds are deposited into the contract and are credited
with a certain rate of interest earnings or grow in relation to the performance of
the investments in which they are deposited is known as what stage? - ANSWERS-
Accumulation Stage.
What are the options for the owner of the annuity at the end of the accumulation
stage? - ANSWERS-1) withdraw the funds in whole or in part.
2) leave the funds in the contract to continue accumulating
3) annuitize the contract
T/F: Can a deferred annuity be funded with a single lump sum premium deposit
OR with a series of premium deposits over time? - ANSWERS-True.
What is the right way to always begin an annuity for a buyer's needs? - ANSWERS-
If the buyer wants to use an annuity to save and accumulate funds, the choice is
the deferred annuity.
If the individual is ready to turn his or her savings into income now, the choice is
the immediate annuity.
If the individual wants to lock in a future income stream today for a payout years
into the future, the choice would be a deferred income annuity.
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