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Michigan Variable Annuities Exam fully solved answers graded A+ 2023/2024 guaranteed a+ $17.99   Add to cart

Exam (elaborations)

Michigan Variable Annuities Exam fully solved answers graded A+ 2023/2024 guaranteed a+

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  • Michigan Variable Annuities

Michigan Variable Annuities Exam fully solved graded A+ 2023/2024 guaranteed a+ guaranteed death benefit - ANS-protects the principal against loss due to market declines; assures contact owner that his/her beneficiaries will receive at least the amount originally invested in the annuity ...

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  • November 1, 2024
  • 72
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • variable annuities
  • Michigan Variable Annuities
  • Michigan Variable Annuities
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laurenjames
Michigan Variable
Annuities Exam fully
solved graded A+
2023/2024
guaranteed a+

,Michigan Variable Annuities Exam fully
solved graded A+ 2023/2024
guaranteed a+
guaranteed death benefit - ANS-protects the principal against loss
due to market declines; assures contact owner that his/her
beneficiaries will receive at least the amount originally invested in
the annuity if death occurs before the contract's maturity date
(standard death benefit payable is usual greater of 1) the amount
of prems paid, less any withdrawls; or 2) the contract's
accumulated value)

Are personal life insurance dividends taxable? - ANS-No, but if
you decide to keep the dividends in the account to earn interest,
interest earned is taxable and not tax-deferred

When a life insurance policy is surrendered for its cash value,
what part is taxable? - ANS-the gain (cash value minus the
policy's cost basis)

If a withdrawal is for $12,000 and the policy's cost basis is
$10,000, how much is taxable? - ANS-$2,000

if the prems paid for a policy totaled $5,000 and a $4,000
withdrawal was taken, what would be the policy's cost basis? -
ANS-$1,000

1. What is a variable annuity?

, - A) A fixed income product
- B) An investment contract with variable returns
- C) A type of life insurance
- D) A traditional savings account
B
A variable annuity is an investment contract where the returns
vary based on the performance of underlying investments.


2. Which of the following best describes the accumulation phase
of an annuity?
- A) When the investor receives payments
- B) When investments grow on a tax-deferred basis
- C) When the account is surrendered
- D) When beneficiaries are paid
B
The accumulation phase is when the investor puts money into
the annuity and the funds grow tax-deferred.


3. What is a primary feature of variable annuities?
- A) Guaranteed returns
- B) Fixed premiums
- C) Investment risk borne by the investor
- D) No fees
Answer:C

, Rationale: In variable annuities, the investment risk is borne by
the investor as the returns can fluctuate based on market
performance.


4. A death benefit in a variable annuity typically guarantees that
the named beneficiaries will receive at least what?
- A) The total contributions made
- B) The annual earnings
- C) The current market value
- D) The surrender value
A
The death benefit typically guarantees that beneficiaries will
receive at least the total contributions made to the annuity.


5. What distinguishes variable annuities from fixed annuities?
- A) Fixed payouts
- B) Guaranteed premiums
- C) Investment options
- D) Tax treatment
C
Variable annuities provide a range of investment options, which
can lead to varying payouts depending on performance.


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