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Free Annuities Practice Questions

Delaware Life, Accident & Health exam — 37 practice questions.

Subtopics: Immediate versus deferred, Single premium, Annuitization phase, Joint and survivor, Indexed annuity, Surrender charge, Annuitant, Refund annuity, Principles, Immediate vs deferred, Products, Payment options, Uses, Taxation, Parties to an annuity, Flexible premium annuity, Cash refund option, Installment refund option, Period certain option, Annuity units, Separate account, Tax-deferred accumulation, Exclusion ratio, Early withdrawal penalty, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

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Sample questions & answers

1. An immediate annuity differs from a deferred annuity because income payments:

Begin within about one payment period after purchase

An immediate annuity begins paying income within roughly one payment interval of purchase, while a deferred annuity delays payout.

2. A single premium annuity is funded by:

One lump-sum payment

A single premium annuity is purchased with one lump-sum deposit rather than a series of payments.

3. The annuitization (payout) phase of an annuity is the period during which:

The accumulated value is converted into a stream of income payments

During the annuitization phase the accumulated value is liquidated into a series of income payments to the annuitant.

4. A joint and survivor annuity continues income:

To a surviving annuitant after the first annuitant dies

A joint and survivor annuity keeps paying income to the surviving annuitant after the first annuitant's death.

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Practice: Annuities

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.