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Free Annuities Practice Questions

Illinois Life exam — 52 practice questions.

Subtopics: Purpose, Accumulation phase, Fixed annuity, Variable annuity, Immediate annuity, Life only annuity, Suitability, Accumulation period, Annuitant, Deferred annuity, Variable annuity licensing, Equity indexed annuity, Pure life option, Life with period certain, Refund annuity, Joint and survivor, Annuity certain, Tax-deferred growth, Exclusion ratio, Surrender charge, Retirement income use, Structured settlement, Owner rights, Early withdrawal penalty, Annuity vs life insurance, Single vs flexible premium annuity, Annuity surrender charge period, Bailout provision, Market value adjustment, Annuitization vs surrender, Annuity death benefit, Free withdrawal provision, Cash refund vs installment refund, Joint life annuity, 1035 exchange, Qualified annuity funding, Accumulation vs annuity units, Assumed interest rate, Guaranteed minimum income benefit, Guaranteed minimum withdrawal benefit, Qualified longevity annuity contract, Split-annuity concept, Annuity suitability standard, Nonqualified withdrawal taxation, Owner's death before annuitization, Two-tier annuity, Annuity guaranteed minimum value, Annuity exclusion ratio

Read the Annuities study guide

Sample questions & answers

1. The primary purpose of an annuity is to:

Provide income that cannot be outlived

An annuity is designed to liquidate a sum into a stream of income the annuitant cannot outlive.

2. During the accumulation phase of a deferred annuity:

Premiums are paid and value grows tax-deferred

During the accumulation phase the owner pays premiums and the contract value grows on a tax-deferred basis.

3. A fixed annuity provides the owner:

A guaranteed minimum interest rate

A fixed annuity guarantees a minimum interest rate and a fixed income amount.

4. Selling a variable annuity in Illinois requires the producer to hold:

Both an insurance license and securities registration

Variable annuities are securities so the producer needs both an insurance license and a securities registration.

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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.