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Free Annuities Practice Questions

Minnesota Life exam — 51 practice questions.

Subtopics: Purpose, Immediate vs deferred, Fixed annuity, Variable annuity, Accumulation and payout, Payout options, Accumulation period, Annuitant, Immediate annuity, 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

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Sample questions & answers

1. The primary purpose of an annuity is to do what?

Systematically liquidate a sum into an income stream

An annuity is designed to systematically liquidate a principal sum, providing an income that can last for a set period or for life.

2. An annuity that begins income payments within about one payment period after purchase is called what?

An immediate annuity

An immediate annuity begins income payments shortly after a single premium purchase, typically within one payment interval.

3. A fixed annuity generally guarantees which of the following?

A minimum guaranteed interest rate and fixed payments

A fixed annuity provides a guaranteed minimum interest rate during accumulation and fixed, predictable income payments.

4. In a variable annuity the investment risk is generally borne by whom?

The contract owner

In a variable annuity the owner allocates premiums to subaccounts and bears the investment risk, so values may rise or fall.

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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.