December 2010 Product Update Quiz

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 is December 13, 2010.

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.

The deferral bonus percentage for the Sun Income Maximizer living benefit is 8%.

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.

The deferral bonus percentage for the Sun Income Maximizer Plus living benefit is 8%.

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.

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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.

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 These withdrawal tiers indicate the percentage of income that can be withdrawn at different age ranges, providing flexibility and options for individuals depending on their age and financial needs.

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.

The correct answer is 10 Years. This means that the bonus period for the Sun Income Maximizer living benefit lasts for 10 years.

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.

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.

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.

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.

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.

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.

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.

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.

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.