December 2010 Product Update Quiz
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What is the effective date of the changes to the Sun Income Riser living benefit and the additions of the Sun Income Maximizer and Sun Income Maximizer Plus living benefits?
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December 10, 2010
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December 13, 2010
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January 1, 2011
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- 2.
Effective December 13, 2010, what will be the new name of the Sun Income Riser living benefit?
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Sun Income Riser 2
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Sun Income Riser III
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Sun Income Riser for Life
Correct Answer
A. Sun Income Riser IIIExplanation
The correct answer is Sun Income Riser III. This suggests that as of December 13, 2010, the Sun Income Riser living benefit will be renamed Sun Income Riser III.Rate this question:
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- 3.
Effective December 13, 2010, what will be the maximum fee for the Sun Income Riser III living benefit?
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1.10% (single life) or 1.30% (joint life)
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1.25% (single life) or 1.45% (joint life)
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1.75% (single life) or 1.95% (joint life)
Correct Answer
A. 1.75% (single life) or 1.95% (joint life)Explanation
The maximum fee for the Sun Income Riser III living benefit will be 1.75% for single life and 1.95% for joint life, effective December 13, 2010.Rate this question:
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- 4.
Effective December 13, 2010, when will Sun Life be able to change the fee on the Sun Income Riser living benefit?
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On any contract quarter at SLF’s discretion
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On any contract anniversary at SLF’s discretion
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On any calendar quarter at SLF’s discretion
Correct Answer
A. On any contract quarter at SLF’s discretionExplanation
Sun Life will be able to change the fee on the Sun Income Riser living benefit on any contract quarter at their discretion. This means that they have the authority to modify the fee at any point during the contract quarter, based on their own judgement and decision-making. The specific timing and frequency of the fee changes will be determined by Sun Life, giving them flexibility in adjusting the fee as they see fit.Rate this question:
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- 5.
Effective December 13, 2010, what will happen to the Sun Income Riser living benefit in New York?
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The rider remains the current Sun Income Riser
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The rider becomes Sun Income Riser III, including all changes
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The rider will be discontinued and neither Sun Income Riser or Sun Income Riser III will be offered
Correct Answer
A. The rider remains the current Sun Income RiserExplanation
As of December 13, 2010, there will be no changes to the Sun Income Riser living benefit in New York. The rider will continue to be offered as it is currently without any modifications or discontinuation.Rate this question:
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- 6.
What is the deferral bonus percentage for the Sun Income Maximizer living benefit?
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5%
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7%
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8%
Correct Answer
A. 8%Explanation
The deferral bonus percentage for the Sun Income Maximizer living benefit is 8%.Rate this question:
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- 7.
How long is the bonus period for the Sun Income Maximizer living benefit?
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10 Years
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10 years with a 10 year extension at each step up
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The bonus continues for the life of the contract
Correct Answer
A. 10 YearsExplanation
The correct answer is 10 Years. This means that the bonus period for the Sun Income Maximizer living benefit lasts for 10 years.Rate this question:
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- 8.
When does the 200% Benefit Enhancement Feature occur on the Sun Income Maximizer living benefit?
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10th contract anniversary
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10th contract anniversary or contract anniversary after the client reaches age 70, whichever is later
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10th contract anniversary or contract anniversary after the client reaches age 70, whichever is sooner
Correct Answer
A. 10th contract anniversary or contract anniversary after the client reaches age 70, whichever is laterExplanation
The 200% Benefit Enhancement Feature on the Sun Income Maximizer living benefit occurs either on the 10th contract anniversary or on the contract anniversary after the client reaches age 70, whichever comes later. This means that the client will be eligible for the benefit enhancement either after 10 years of the contract or after they turn 70, whichever happens later in their contract.Rate this question:
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- 9.
Which of the following is NOT true of a One-time Access Withdrawal taken using the One-time Access Withdrawal Feature on the Sun Income Maximizer living benefit?
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8% bonus is credited for the year in which this withdrawal occurs
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Does NOT end the bonus period or 200% benefit enhancement feature
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Does NOT lock in withdrawal age tier
Correct Answer
A. 8% bonus is credited for the year in which this withdrawal occursExplanation
The statement "8% bonus is credited for the year in which this withdrawal occurs" is not true of a One-time Access Withdrawal taken using the One-time Access Withdrawal Feature on the Sun Income Maximizer living benefit.Rate this question:
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- 10.
What is the maximum premium payment per contract year on or after the first Account Anniversary with the Sun Income Maximizer living benefit?
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$50,000 (or IRA limit for qualified accounts)
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$100,000 (or IRA limit for qualified accounts)
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There is no limit
Correct Answer
A. $50,000 (or IRA limit for qualified accounts)Explanation
The maximum premium payment per contract year on or after the first Account Anniversary with the Sun Income Maximizer living benefit is $50,000 (or IRA limit for qualified accounts). This means that individuals can pay up to $50,000 per year towards their premium for this benefit. However, for qualified accounts such as an IRA, the payment limit may be subject to the IRA limit instead.Rate this question:
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- 11.
What are the withdrawal tiers on the Sun Income Maximizer living benefit?
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4% at age 59-69, 5% at age 70-79, 6% at age 80 +
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4% at age 59-64, 5% at age 65-79, 6% at age 80 +
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3% at age 59-64, 4% at age 65-79, 5% at age 80 +
Correct Answer
A. 4% at age 59-64, 5% at age 65-79, 6% at age 80 +Explanation
The correct answer is 4% at age 59-64, 5% at age 65-79, 6% at age 80 +. This means that individuals between the ages of 59 and 64 can withdraw 4% of their income, individuals between the ages of 65 and 79 can withdraw 5% of their income, and individuals who are 80 years old or older can withdraw 6% of their income. This tiered system allows for higher withdrawal percentages as individuals get older, potentially providing more financial flexibility in retirement.Rate this question:
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- 12.
What differences apply to Sun Income Maximizer living benefit in New York?
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Only Single Life benefits are allowed in New York
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The deferral bonus percentage is 7%
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The Sun Income Maximizer living benefit is not available in New York
Correct Answer
A. The Sun Income Maximizer living benefit is not available in New York -
- 13.
Which of the following is NOT a designated fund available with the Sun Income Maximizer living benefit?
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SC Ibbotson Conservative Fund
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PIMCO Global Multi-Asset Portfolio
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MFS Global Tactical Allocation Portfolio
Correct Answer
A. PIMCO Global Multi-Asset PortfolioExplanation
The question asks for a fund that is NOT available with the Sun Income Maximizer living benefit. The correct answer is "PIMCO Global Multi-Asset Portfolio." This means that the PIMCO Global Multi-Asset Portfolio is not one of the designated funds available with the Sun Income Maximizer living benefit.Rate this question:
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- 14.
Effective December 13, 2010, what will the fee for the Sun Income Maximizer Plus living benefit be?
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1.10% (single life) or 1.30% (joint life)
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1.25% (single life) or 1.45% (joint life)
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1.75% (single life) or 1.95% (joint life)
Correct Answer
A. 1.25% (single life) or 1.45% (joint life)Explanation
The fee for the Sun Income Maximizer Plus living benefit effective December 13, 2010, will be 1.25% for single life and 1.45% for joint life.Rate this question:
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- 15.
What is the Plus Factor percentage for the Sun Income Maximizer Plus living benefit?
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2.5%
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3%
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5%
Correct Answer
A. 2.5%Explanation
The Plus Factor percentage for the Sun Income Maximizer Plus living benefit is 2.5%. This means that the living benefit provides an additional 2.5% to the policyholder's income. This could be in the form of a bonus or an increase in the payout amount. It is a percentage that adds to the overall value of the living benefit and enhances the policyholder's financial security.Rate this question:
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- 16.
Which of the following is true of the Plus Factor for the Sun Income Maximizer Plus living benefit?
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It is added to the benefit base each contract anniversary after the client begins lifetime withdrawals
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It is added to the withdrawal each contract anniversary after the client begins lifetime
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It is added to the death benefit each contract anniversary after the client begins lifetime
Correct Answer
A. It is added to the benefit base each contract anniversary after the client begins lifetime withdrawalsExplanation
The Plus Factor for the Sun Income Maximizer Plus living benefit is added to the benefit base each contract anniversary after the client begins lifetime withdrawals. This means that the benefit base, which is the amount used to calculate lifetime withdrawals, increases annually with the addition of the Plus Factor. This allows the client to potentially receive higher lifetime income over time.Rate this question:
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- 17.
Which of the following is true of the Plus Factor calculation for the Sun Income Maximizer Plus living benefit?
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It is compounded quarterly
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It is compounded annually
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It does not compound
Correct Answer
A. It is compounded annuallyExplanation
The Plus Factor calculation for the Sun Income Maximizer Plus living benefit is compounded annually. This means that the interest or growth earned on the investment is added to the principal once every year. This compounding method allows for the potential for greater growth over time compared to compounding less frequently or not at all.Rate this question:
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- 18.
What are the withdrawal tiers on the Sun Income Maximizer Plus living benefit?
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3% at age 59-64, 4% at age 65-79, 5% at age 80 +
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4% at age 59-64, 5% at age 65-79, 6% at age 80 +
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3% at age 59-69, 4% at age 70-79, 5% at age 80 +
Correct Answer
A. 3% at age 59-64, 4% at age 65-79, 5% at age 80 +Explanation
The correct answer is 3% at age 59-64, 4% at age 65-79, 5% at age 80 +. This means that individuals between the ages of 59 and 64 can withdraw up to 3% of their income, while those between the ages of 65 and 79 can withdraw up to 4%. Individuals who are 80 years old or older can withdraw up to 5% of their income. These withdrawal tiers indicate the percentage of income that can be withdrawn at different age ranges, providing flexibility and options for individuals depending on their age and financial needs.Rate this question:
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- 19.
What is the deferral bonus percentage for the Sun Income Maximizer Plus living benefit?
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5%
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7%
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8%
Correct Answer
A. 8%Explanation
The deferral bonus percentage for the Sun Income Maximizer Plus living benefit is 8%.Rate this question:
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- 20.
Which of the following is true of the deferral bonus calculation for the Sun Income Maximizer Plus living benefit?
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It compounds quarterly
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It compounds annually
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It is a simple interest calculation
Correct Answer
A. It is a simple interest calculationExplanation
The correct answer is that the deferral bonus calculation for the Sun Income Maximizer Plus living benefit is a simple interest calculation. This means that the bonus is calculated based on the initial investment amount and a fixed interest rate, without compounding over time.Rate this question:
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Current Version
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Jun 20, 2024Quiz Edited by
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Nov 29, 2010Quiz Created by
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