a variable annuity has which of the following characteristics

D)II and III. B) fixed in value until the holder retires. If this client is in the payout phase, how would his April payment compare to his March payment? Home; About. Reference: 12.3.3 in the License Exam. The remainder of the premium is invested in the separate account. Variable annuities grow tax-deferred, so you dont have to pay taxes on any investment gains until you begin receiving income or make a withdrawal. This chapter was updated on 15 December, 2005. A) Only during the payout period. Trends Networks and Critical Thinking Module 2 A) Fixed annuities. IBM is a global brand and has its presence in 170 countries and operates . A)value of underlying securities held in the separate account. B) accumulation units. A)II and III. Her agent recommended she choose a variable annuity as a safe haven for the funds. B) Life annuity. All of the following investment strategies offer either fully or partially tax-deductible contributions to individuals who meet eligibility requirements EXCEPT: 7 - Annuities Flashcards | Quizlet In addition, if the customer is not at least 59-, there will be a tax penalty of an additional 10%. B) the number of annuity units is fixed, and their value remains fixed. The tax on this amount is $3,000. Question #36 of 48Question ID: 606805 If the owner of a variable annuity dies during the accumulation period, any death benefit will: *Only variable annuities have payout plans that provide the client income for life. A registered person recommends the purchase of a variable annuity to one of his clients. C)II and III. If the data is normally distributed with standard deviation$198, find the percent of vacationers who spent less than $1,200 per day. B) The death benefit cannot ever be more than the guaranteed benefit. The features of variable deferred annuities are many. D) III and IV. Surrender fees and penalties for early withdrawal. Reference: 12.3.4 in the License Exam, Chapter 16: U.S. Government and State Rules a, Chapter 17: Other SEC and SRO Rules and Regul, Chapter 15: Ethics, Recommendations, and Taxa, Chapter 13: Direct Participation Programs, Fundamentals of Financial Management, Concise Edition, Joe B. Hoyle, Thomas F. Schaefer, Timothy S. Doupnik, Carl Warren, James M Reeve, Jonathan E. Duchac. B) Exchange traded Funds (ETFs) or Exchange traded Notes (ETNs) If your 60-year-old customer purchases a nonqualified variable annuity and withdraws some of her funds before the contract is annuitized, what are the consequences of this action? the SEC. D)the rate of return is determined by the underlying portfolio's value. D)I and IV. An immediate annuity is designed to pay an income one time-period after the immediate annuity is bought. "Variable Annuities: What You Should Know," Page 3. An investor who has purchased a nonqualified variable annuity has the right to: When a variable contract is annuitized (distributed in regular payments, not as a lump sum), the number of accumulation units is multiplied by the unit value to arrive at the account's current value. D) the payout plans provide the client income for life. A variable annuity does not guarantee an earnings rate because earnings will depend on the performance of the separate account. B)suitable regardless of funding sources However, it does guarantee payments for life (mortality). The noble relatives of the Count d'Horn absolutely blocked up the ante-chambers of the regent, praying for mercy on the misguided youth, and alleging that he was insane . How to Navigate Market Volatility While Saving for Retirement, Variable Annuity: Definition and How It Works, Vs. Paraplanner / Marketing Support Specialist Job in Austin, TX variable annuity without paying tax at the time of the transfer. A) A variable annuity For this potential advantage, the investor, rather than the insurance company, assumes the investment risk. D)separate account may consist of mutual funds. Annual depreciation on the machine is$12,000, and the tax rate of the company is 25%. To comply with Regulation SP, a brokerage firm is required to do all of the following EXCEPT: A) deliver an annual notice of its information collecting and sharing policies to all customers. C)number of accumulation units. FINRA. *If the separate account of a variable annuity with an AIR of 4% had actual net earnings of 8% in March, the April payment will be higher than the March payment. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. D) payments continue until age 70-. An accumulation unit in a variable annuity contract is: A)an accounting measure used to determine the contract owner's interest in the separate account. A)II and IV. Variable annuity salespeople must be registered with FINRA and the state insurance department. Variable annuities must be registered with: C. D) expense guarantee. Distribution of dividends occurs during the accumulation period. A registered representative's (RR) customer is speaking of a variable life insurance contract he owns. If you need to withdraw money from the account because of a financial emergency, you may face surrender fees. None of the other investments listed here offer tax-deferred growth. IBM Noida, Uttar Pradesh, India4 weeks agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. D)an accounting measure used to determine payments to the owner of the variable annuity. The value of an annuity unit varies from month to month according to the performance of the separate account in comparison to the assumed interest rate. *When money is deposited into the annuity, it is purchasing accumulation units. Designed to protect against inflation. B) Life annuity. IBM Noida, Uttar Pradesh, India1 month agoBe among the first 25 applicantsSee who IBM has hired for this roleNo longer accepting applications. However, because the client is not yet age 59- when making the withdrawal, he also pays a 10% penalty, or $1,000. An annuitant assumes the investment risk of a variable annuity and is not protected byt he insurance company from capital losses. Before buying a variable annuity, investors should carefully read the prospectus to try to understand the expenses, risks, and formulas for calculating investment gains or losses. This recommendation is: D) unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. D) Any time before the accumulation period. 11.1: Fundamentals of Annuities - Mathematics LibreTexts As with all tax-deferred accounts, municipal bonds are not appropriate investments because interest earned on municipals is already tax exempt at the federal level. An 18-year-old, unmarried high school student sought a safe investment for a $30,000 bequest until after she graduated from college. C)It will be higher. A) It will be higher. C) II and III. A 45-year-old investor takes a lump-sum distribution from a nonqualified variable annuity. 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. They are more suitable for individuals who can fund the annuity with cash, want to supplement existing retirement benefits they have already funded, are comfortable with the market risk associated with a VA separate account portfolio and anticipate a long retirement. The figure below illustrates a six-month annuity with monthly payments. Many variable annuities invest the separate account in mutual funds. D) The fact that periodic payments into the contract may increase or decrease. \text{Salaries:} && \text{Deductions:}\\ A) be paid to a designated beneficiary. a. If this client is in the payout phase, how would his April payment compare to his March payment? Fixed annuities are not considered securities as return is guaranteed by the insurance company issuer. Question #43 of 48Question ID: 606809 Clusters of vesicles in various stages. must provide full and fair disclosure. D) 4500. D) the number of annuity units becomes fixed when the contract is annuitized. A Variable Annuity has which of the following characteristics? D)with guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is guaranteed, With guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is not guaranteed because payments stop when the annuitant has received an amount equal to the principal account value or the contract term ends. Chapter 7: Annuities Flashcards | Quizlet Reference: 12.3.3 in the License Exam. B)Life annuity with period certain. Solved The following are characteristics of a public | Chegg.com IBM hiring Senior Practitioner- Policy Admin in Noida, Uttar Pradesh *The owner of a life annuity with 10-year period certain will receive payments for life, subject to a minimum of 10 years. Variable Annuities Flashcards | Quizlet Transcribed image text: 6. Life with period certain will produce a smaller check for life because the insurance company will guarantee payments to a beneficiary for a certain period of time designated in the contract should the annuitant die within that period. . Facebook reports that 70%70 \%70% of their users are from outside the United States and that 50%50 \%50% of their users log on to Facebook daily. 8 annuities provide a guaranteed rate of return, whereas annuities provide conservative to aggressive investments whose rates of return are not guaranteed. While variable annuities have greater potential for earnings, since their interest rate rises and falls with their underlying investments, they can lose money. A the safety of the principal invested B the yield is always higher than bond yields. B) Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis. B) variable annuities are classified as insurance products. D) I and III. B) a variable annuity contract is not required to be sold by prospectus because it is an insurance contract This describes which of the following annuities? This recommendation is: b. C) I and IV. Unit 12: Variable Annuities Flashcards | Chegg.com C) The ordinary income on the proceeds over the cost basis plus 10% of the net gain (if any) if Sue is younger than 59- years old. PDF Prudential IncomeFlex Target Vanguard Balanced Index Fund Which of the following statements regarding variable annuities are TRUE? a. Practice all cards. Senior Customer Care Advocate Annuities ($22 per hour) in Warwick 6102.0.55.001 - Labour Statistics: Concepts, Sources and Methods, Dec 2005 B) During the accumulation period. Question #42 of 48Question ID: 606830 Reference: 12.1.2 in the License Exam. Once a customer annuitizes a variable annuity, which of the following statements are TRUE? The annuity unit's value represents a guaranteed return. About Us A)Joint tenants annuity. C)complete all paper work to purchase the annuity contract and obtain the clients signature immediately. This factor is used to establish the dollar amount of the first annuity payment. A) Age 56, available cash to invest, makes the maximum retirement plan contributions to an existing IRA and 401(k) plan Portfolio Compliance Risk Analyst Job in Newark, NJ at Prudential C) 10 years of variable payments. Of the answer choices given the best would be to reevaluate the recommendation based on the new information tendered by the client. The value of the separate account is now $30,000. D)II and III. B) Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis. For an insurance company, mortality risk turns out unfavorably if: Fixed annuities pay a fixed monthly benefit which loses purchasing power if there is inflation. Which of the following is characteristic of variable annuities? (Check all that apply.) Because this is not guaranteed, the policyowner bears the investment risk. A) Money market fund. 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. Therefore, ordinary income taxes will apply to the entire $10,000. If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding:

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