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Primerica Life Insurance Exam Chapter 5 with complete verified solutions 2025.
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Primerica Life Insurance Exam Chapter 5 with complete verified solutions 2025.
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Primerica Life Insurance ExamChapter 5 with complete
verified solutions 2025
Owner - answer The owner is the person who purchases the
contract and has all of the rights such as naming the beneficiary and
surrendering the annuity. The owner, however, does not have to be
the one who receives the benefits; it could be the annuitant or the
beneficiary.
Annuitant - answer A person who receives an annuity contract's
distribution. Annuitant must be a Natural Person
Beneficiary - answer The one who recieves annuity assets.
Accumulation Period - answer The time over which the annuitant
makes payments or investments in an annuity, and when those
payments earn interest tax deferred.
Annuitization period - answer In an annuity, the accumulated
money is converted into a stream of income to the annitant
Immediate Annuity - answer contract owner gets money
immediately only if it is funded with a lump sum and provides
payments that start within one year.
Deferred Annuity - answer Provides income payments start at
some future date after one year. Either periodic payments or a lump
sum.
, Nonforfeiture - answer Deferred annuity has a guaranteed
surrender value that is available if the owner decides to surrender
the annuity prior to annuitization
Surrender Value - answer The value of a life assurance policy when
it is turned into cash
Life Contingency Options - answer No guarantee that all the
proceeds will be paid out
single life annuity - answer Annuities cover one life.
Multiple Life Annuity - answer Annuities Cover 2 or more lives.
Joint Life Annuity - answer payment to two or moer annuitants
which ceases upon death of either
Joint and Survivor Annuity - answer an annuity that provides
payments over the life of both you and your spouse
Annuities Certain - answer In contrast with life contingency benefit
payment options, annuities certain are short term annuities that
limit the amounts paid to a certain fixed period or until a certain
fixed amount is liquidated.
Fixed Period Annuity - answer Company promises a payout for a
fixed or guaranteed period of time, independent of the survival of
the annuitant
fixed period installments - answer The annuitant selects the time
period for the benefits, and the insurer determines how much each
payment will be, based on the value of the account and future
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