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  4. Annuities

Free Annuities Practice Questions

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

Subtopics: Purpose, Accumulation period, Annuitization, Fixed annuity, Variable annuity licensing, Suitability, Immediate annuity, Tax deferral, 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, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

Read the Annuities study guide

Sample questions & answers

1. An annuity is primarily designed to:

Provide income and guard against outliving one's assets

Annuities convert a sum into income, protecting against the risk of outliving one's money.

2. The accumulation period of an annuity is when:

Money is paid in and grows

The accumulation period is when contributions are made and grow tax-deferred before payout.

3. Annuitizing a contract means:

Converting the value into a stream of income payments

Annuitization converts the accumulated value into periodic income payments.

4. A fixed annuity guarantees:

A minimum interest rate and fixed payments

Fixed annuities guarantee a minimum interest rate and fixed income payments.

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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.