1. Exam Prep
  2. New Jersey
  3. Life
  4. Annuities

Free Annuities Practice Questions

New Jersey Life exam — 52 practice questions.

Subtopics: Annuity purpose, Deferred vs immediate, Fixed vs variable, Accumulation phase, Payout options, Guaranty association cap, Suitability, Purpose, Accumulation period, Annuitant, Immediate annuity, Deferred annuity, Fixed annuity, Variable 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, often for retirement

An annuity is designed to liquidate a sum into a stream of income, often for retirement.

2. An annuity that begins income payments more than one period after purchase is a(n):

Deferred annuity

A deferred annuity accumulates value and begins payments at a future date.

3. Which annuity credits a guaranteed minimum interest rate to the owner?

Fixed annuity

A fixed annuity credits a guaranteed minimum interest rate and pays fixed benefit amounts.

4. The period during which an annuity owner pays in and the value grows is the:

Accumulation phase

During the accumulation phase contributions are made and earnings grow tax-deferred.

All Life topics

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.