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Free Annuities Practice Questions

Virginia Life exam — 51 practice questions.

Subtopics: Purpose, Accumulation vs annuity, Immediate annuity, Fixed annuity, Variable annuity, Life with period certain, Accumulation period, Annuitant, Deferred annuity, Variable annuity licensing, Equity indexed annuity, Pure life option, 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, and protect against outliving assets

Annuities are designed to liquidate a sum into income, protecting against the risk of outliving one's money.

2. The phase during which an annuity owner makes payments into the contract is the:

Accumulation period

The accumulation period is when funds are paid in and grow; the annuity period is when income is paid out.

3. An immediate annuity generally begins income payments:

Within about one payment interval after purchase

A single-premium immediate annuity starts payments within one payment period (e.g., one month) after purchase.

4. A fixed annuity provides:

A guaranteed minimum interest rate and fixed income payments

Fixed annuities guarantee a minimum interest rate during accumulation and fixed payments during payout.

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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.