Team Af Quiz Annuities - General

10 Questions | Total Attempts: 43

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Team Af Quiz Annuities - General

Questions and Answers
  • 1. 
    1. If you take a withdrawal from an annuity before you are age 59 1/2, you may be subject to a 10% IRS penalty tax.   True or False?
    • A. 

      True

    • B. 

      False

  • 2. 
    All of the following are true about annuities,"except"?
    • A. 

      You can have a choice of interest rate guaranteed periods

    • B. 

      You can have an annuity payment guaranteed for life

    • C. 

      The dealth benefit is treated the same (income taxation) as a life insurance death benefit

    • D. 

      During the accumulation stage, the earning grow tax-deferred

  • 3. 
    Annuities can not be used in a IRA? True or False
    • A. 

      True

    • B. 

      False

  • 4. 
    An annuity may be a suitable product for what type of client?
    • A. 

      A college student, who has very little income and no emergency funds at all

    • B. 

      A senior who is tired of paying taxes on their CDs (they do not need current income from the CDs)

    • C. 

      A young professional who has a qualified account to rollover that wants to take advantage of multiple professional fund managers

    • D. 

      Both B and C

  • 5. 
    You find the the websites for Protective, ING, AXA and Prudential by going to AccessAllstate (using the product tab)? True or False?
    • A. 

      True

    • B. 

      False

  • 6. 
    The stages of an annuity are the following?
    • A. 

      Beginning and the end

    • B. 

      Accumulation Phase and Payout Phase (Annuitization)

    • C. 

      Growth and Deferral

    • D. 

      Early withdraw and Surrender

  • 7. 
    Index annuities are often considered fixed annuities (do not have to have a series 6 to sell). True or False
    • A. 

      True

    • B. 

      False

  • 8. 
    The benefits of an annuity are the following?
    • A. 

      As a means of supplementing Individual Retirement Accounts (IRAs) and other employer retirement plans that have been “maxed out” in terms of contribution levels

    • B. 

      Retirement Savings

    • C. 

      As a guaranteed income stream for the future

    • D. 

      All of the above.

  • 9. 
    During the Payout Phase of an annuity the following are true,"except"?
    • A. 

      Income stream can be payable for life

    • B. 

      Income stream is tax free (income)

    • C. 

      Stream may also be for a “period certain,” a defined period of time

    • D. 

      Annuitized payments under non-qualified contracts are part taxable distribution of contract gain and part non-taxable return of the owner's cost basis

  • 10. 
    An annuity is a saving vehicle that is insured by the FDIC (like a CD). True or False?
    • A. 

      True

    • B. 

      False

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