a variable annuity has which of the following characteristics

These include white papers, government data, original reporting, and interviews with industry experts. Her agent recommended she choose a variable annuity as a safe haven for the funds. do not have a separate account IV. D) each annuity unit's value varies with time, but the number of annuity units is fixed. Question #24 of 48Question ID: 606806 C) It will stay the same. Variable annuities offer the possibility of higher returns and greater income than fixed annuities, but theres also a risk that the account will fall in value. Her intent was to use the funds for the down payment on a house after graduation. *A variable annuity may only be surrendered during the accumulation period. A deferred annuity is an insurance contract that promises to pay the buyer a regular stream of income, or a lump sum, at some date in the future. Senior Customer Care Advocate Annuities ($22 per hour) in Warwick Once the cost basis is reached, any further withdrawals are a nontaxable return of principal. The client's investment objectives, tax bracket, investment experience and risk tolerance all align well with a VA recommendation. B) with guaranteed minimum withdrawal benefits (GMWBs) the periodic payments can be monthly, quarterly or annually \hspace{10pt} \text{Sales salaries} & \$\hspace{5pt} 670,000 & \hspace{10pt} \text{Income tax withheld} & \$198,744\\ Your customer, still working, informs you that she will be funding a variable annuity you have recommended from 2 sources: a refinancing of her primary home where she will be able to draw out equity that has built up since it was purchased 15 years ago, and cashing out another variable annuity that she recently purchased within the past 2 years without a lifetime income rider like the one you have recommended. These contracts cover both lives and will continue to make payments until the last spouse dies. C) II and IV. B) The entire $10,000 is taxable as ordinary income. If an insurance holder dies sooner than expected, the insurance company will have to pay the death benefit sooner. 111. Question #14 of 48Question ID: 606823 What are the different types of annuities? | III This chapter was updated on 15 December, 2005. B)corporate stock. All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: Annuity units are units of ownership when the contract is in the payout stage. Expert Answer. D) III and IV. B) The investor's marital status. Reference: 12.3.3 in the License Exam. A) II and IV. D)suggest to the client that perhaps a loan or refinancing his vacation home might be a better way to fund the contract purchase. The payout compared to the initial payout upon annuitization. Question #22 of 48Question ID: 606803 CH 7 Annuities Flashcards | Quizlet With regard to a variable annuity, all of the following may vary EXCEPT: Solved Which of the following is characteristic of variable - Chegg In March, the actual net return to the separate account was 8%. A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic pay- ments to you, beginning either immediately or at some future date. (Check all that apply.) D) a minimum of 10 years of variable payments, followed by additional variable payments for life. D) tax free. In addition, if the customer is not at least 59-, there will be a tax penalty of an additional 10%. B) fixed in value until the holder retires. The number of accumulation units is always fixed throughout the accumulation period. Variable annuities provide protection from inflation because their monthly income can increase depending on the separate account's performance. The customer, in the accumulation stage of the annuity, is holding accumulation units. A variable annuity is a combination of 2 products: an insurance contract and a mutual fund. Changes in payments on a variable annuity correspond most closely to fluctuations in the: VAs, blue chip mutual fund portfolios, ETFs and ETNs are all tied to market performance in some way and have risk characteristics that would not align in terms of suitability for this client. Variable annuities are designed to combat inflation risk. The growth portion is taxed as a capital gain. IBM is a global brand and has its presence in 170 countries and operates . No Hibernation for Issuers of Index-Linked Variable Annuities and Index A variable annuity is a type of annuity contract, the value of which can vary based on the performance of an underlying portfolio of sub accounts. This makes a total of $4,000 tax and penalty paid on the random withdrawal. regulated under both securities and insurance laws. How Are Nonqualified Variable Annuities Taxed? *Of the four customer profiles the individual already making the maximum retirement account contributions available to him and wanting to minimize the tax consequences of being in a high income tax bracket would be most suitable for a VA recommendation. B)variable annuities are classified as insurance products. Once a variable annuity has been annuitized: MetLife, Inc. Senior Customer Care Advocate Annuities ($22 per hour Ideally they should be funded with readily available cash rather than using funds liquidated from existing investments. *Insurance companies introduced the variable annuity as an opportunity to keep pace with inflation. An investor owning which of the following variable annuity contracts would hold accumulation units? The funds in an annuity are off-limits to creditors and other debt collectors. However, if you take a withdrawal during the contractssurrender period, which can be as long as 15 years, youll generally have to pay a surrender fee. Question #42 of 48Question ID: 606830 All of the following are characteristics of a variable annuity, except: a. Which of the following statements regarding variable annuities are TRUE? The tax on this is $2,800 ($10,000 x 28%). III. During the accumulation phase, you make purchase payments. Ted's Bio; Fact Sheet; Hoja Informativa Del Ted Fund; Ted Fund Board 2021-22; 2021 Ted Fund Donors; Ted Fund Donors Over the Years. IBM Noida, Uttar Pradesh, India4 weeks agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. I. C)municipal bonds. Variable annuities operate in similar ways to . *An immediate annuity has no accumulation period. A)2800. A) waiver of premium 8 annuities provide a guaranteed rate of return, whereas annuities provide conservative to aggressive investments whose rates of return are not guaranteed. \hspace{7pt} a. December 303030, to record the payroll. Question #11 of 48Question ID: 606816 An annuity is a continuous stream of equal periodic payments from one party to another for a specified period of time to fulfill a financial obligation. B) Age 78, retired for 20 years, lives comfortably and wants to leave all liquid assets to children What percentile is represented by $710? When the first party dies, the annuity payment is made to the survivor. *The minimum guaranteed death benefit is provided by that portion of the payment invested in the insurance company's general account. Outgoing personality with the ability to develop relationships (i.e., "People Person") and a sincere desire to help others Fearless, positive attitude, and willingness to be accountable for results Organized, detail-oriented, and excellent time-management skills A desire for continuous learning D) Keogh plans. \hspace{10pt} Medicare, 1.5%1.5\%1.5% What Are the Distribution Options for an Inherited Annuity? This recommendation is: B) Corporate debt securities How Good of a Deal Is an Indexed Annuity? Which of the following statements regarding variable annuities are TRUE? This role is also eligible for annual short-term incentive compensation. The accumulation period of a variable annuity may continue for many years. Future annuity payments will vary according to the separate account's performance. Reference: 12.3.1 in the License Exam. As of March 03, 2023, had a relative dividend yield of % compared to the industry median of %. b) What probability is the 20%20 \%20% mentioned above? C) A 10% penalty plus the payment of ordinary income tax on all of the funds withdrawn. The earnings are taxable but the cost basis is returned tax free. For example, if the income is monthly, the first payment comes one month after the immediate annuity is bought. A)equity funds. 2019 Ted Fund Donors What Are the Biggest Disadvantages of Annuities? Once the cost basis is reached, any further withdrawals are a nontaxable return of principal. D)the rate of return is determined by the underlying portfolio's value. C)such an annuity is designed to combat inflation risk. He makes the following four statements, all of which are true EXCEPT B)4200. If one purchases an annuity for a set price, the issuing company would invest the funds and hold them until they are supposed to be disbursed, generally based on the owner's age. D) an accounting measure used to determine the contract owner's interest in the separate account. C) II and III. IV. Fixed interest rates during the payout period The value of each accumulation unit varies: Daily Variable annuities have Variable interest rates and benefits All of the following statements are true regarding the interest rate guarantees of fixed annuities, EXCEPT: Ideally they should be funded with readily available cash rather than using funds liquidated from existing investments. A customer has an investment objective of keeping pace with inflation while assuming moderate risk. D) Life annuity with 10-year period certain. D)an accounting measure used to determine payments to the owner of the variable annuity. Question #45 of 48Question ID: 606795 Though there is no beneficiary designation during the annuitization, this is not an issue for this annuitant. 10.1 This chapter addresses a number of ABS statistics relating to the economically active population which were not discussed elsewhere. A security is any investment for profit with management performed by a third party. C) A 25year old public school teacher who would like to save enough for the purchase of her first home within the next 3 to 5 years. How does an indexed annuity differ from a fixed annuity? D) payments continue until age 70-. The following are the characteristics or the hierarchy of a trend except A. Gigatrends C. Megatrends B. Macrotrends D. Nanotrends _____11. In this case, the investor is taking a lump-sum distribution before reaching age 59- and must pay an additional 10% penalty on the taxable amount. A variable annuity's separate account is: A) used for the investment of monies paid by variable annuity contract holders B) separate from the insurance company's general investments C) operated in a manner similar to an investment company D) as much a security as it is an insurance product All of the above A customer is receiving annuitized payments from a variable annuity. the agent must be licensed in both insurance and securities. If this client is in the payout phase, how would his April payment compare to his March payment? A customer has a nonqualified variable annuity. These contracts come with high surrender charges. Question #32 of 48Question ID: 606815 C)Keogh plans. Here is how guaranteed lifetime annuities work. B) Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis. A customer has an investment objective of keeping pace with inflation while assuming moderate risk. When the second party dies, all payments cease. Which is it? B) 0. What are the characteristics of fixed annuities? - InsuranceQnA A)contact the issuer of the clients existing VA contract to facilitate the clients surrender of the contract. Policyholders . have investment risk that is assumed by the investor A) changes in common stock prices tend to be more closely related to changes in the cost of living than changes in bond prices. C) 3800. An investor who has purchased a nonqualified variable annuity has the right to: Variable annuities must be registered with: All of the following statements concerning a variable annuity are correct EXCEPT: D) variable annuities will protect an investor against capital loss. *The number of variable annuity accumulation units can rise during the accumulation period when additional units are being purchased. is required by the Securities Act of 1933. B) accumulation units. Securely download your document with other editable templates, any time, with PDFfiller. Question #37 of 48Question ID: 606817 D)Variable annuity contract with a discussion regarding legislative risk, A VA with its investments in the separate account subject to market risk would not align with the customer's objective. a variable annuity has which of the following characteristics must be filed with FINRA. D) Variable annuities. A) I and II Explain what is meant by positive and negative Fixed income instruments, like bonds and fixed annuities, are subject to purchasing power risk. D)partially a tax-free return of capital and partially taxable. The owner of a variable annuity has all of the following rights EXCEPT D) an accounting measure used to determine the contract owner's interest in the separate account. The growth portion is taxed as ordinary income. A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments and then pays you a level of income in retirement that is determined by the performance of the investments you choose.

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