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Free Annuities Practice Questions

South Dakota Life exam — 54 practice questions.

Subtopics: Immediate annuity, Accumulation phase, Annuitant, Life only option, Life with period certain, Joint and survivor, Fixed annuity, Indexed annuity, Surrender charge, Purpose, Accumulation period, Deferred annuity, Variable annuity, Variable annuity licensing, Equity indexed annuity, Pure life option, Refund annuity, Annuity certain, Tax-deferred growth, Exclusion ratio, 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. An immediate annuity differs from a deferred annuity mainly because an immediate annuity:

Begins income payments within about one payment period of purchase

An immediate annuity begins income shortly after purchase, while a deferred annuity delays payments to a later date.

2. During the accumulation phase of a deferred annuity:

Contributions grow on a tax-deferred basis until withdrawal

In the accumulation phase, the annuity's value grows tax-deferred until the owner begins taking distributions.

3. In an annuity contract, the annuitant is the individual:

Whose life expectancy is used to determine the income payments

The annuitant is the individual whose life is used to measure the annuity's income payments.

4. A straight life (life only) annuity payout option provides:

A lump sum at death

The life only option pays the largest income for the annuitant's life but stops at death with no residual to beneficiaries.

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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.