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S7 - Ch 11 - Basics of Life Insurance and Variable Annuities - Exam - Missed Questions

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An annuitant receives payment under a variable annuity for a number of years. At his death, his widow receives a lump-sum payment. The annuity is
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An annuitant receives payment under a variable annuity for a number of years. At his death, his widow receives a lump-sum payment. The annuity is
variable unit refund annuity.

lump-sum is a unit refund annuity. if the widow received the remaining annuity units in installment it would be installment refund annuity.
When converting accumulation units to annuity units when annuitizing a variable annuity contract, all of the following would be considered except the
[A] annuitants age
[B] annuitants gender
[C] assumed interest rate
[D] beneficiary's choice of payout options
[D] beneficiary's choice of payout options

choice of payout options is decided by annuitant
An annuity unit in a variable annuity is most like a:
[A] pension payment
[B] insurance unit
[C] IRA contribution
[D] mutual fund shares or units
[D] mutual fund shares or units
A few years ago, a client had a few investment options and the decision was made that the client would invest in a non-qualified variable annuity. How are contributions to this type of investment product treated for tax purposes?
When the contributions are withdrawn, the amount withdrawn will not be subject to taxation.

Contributions made to a non-qualified variable annuity are after tax. For this reason, the withdrawal of contributions will not be subject to taxation. Earnings in this type of plan grow on a tax-deferred basis, but are taxed when withdrawn.
Which of the following is true about variable annuities?
[A] During the accumulation period, the monthly premium is fixed.
[B] During the accumulation period, the monthly premium varies.
[A] During the accumulation period, the monthly premium is fixed.