Primerica exam 3 QUESTIONS WITH COMPLETE SOLUTIONS

All of the following are true regarding a qualified annuity EXCEPT correct answer: At distribution, all amounts received by the employee are tax free. What type of insurance would be used for a Return of Premium rider? correct answer: Increasing Term Which of the following is the best reason to purchase life insurance rather than annuities? correct answer: To create an estate Every expressed warranty made at or before the execution of a policy must be correct answer: Contained in and referred to in the policy or other document and signed by the insured. How are contributions to a tax-sheltered annuity treated with regards to taxation? correct answer: They are not included as income for the employee, but are taxable upon distribution. Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? correct answer: It does not guarantee that the entire principal amount will be paid out. How are contributions to a tax-sheltered annuity treated with regards to taxation? correct answer: They are not included as income for the employee, but are taxable upon distribution.