2026 WASHINGTON LIFE HEALTH EXAMS SCRIPT
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Profit sharing pension plans - ✔✔Employees receive a potion of company profits.
Contributions vary at the companies discretion. Contributions must be "reoccurring and
substantial".
✔✔Defined benefit pension plans - ✔✔Guaranteed specific retirement benefit paid for
by employer. Formula determines how much is received by employee.
✔✔Defined contribution pension plans - ✔✔Employer contributes a specific amount
each year to the plan. Employee is responsible for choosing the investment from
choices offered by the retirement plan service. Must be funded regardless of company
profits.
✔✔Keogh (HR 10) plan - ✔✔Self-Employed person can contribute a specified amount
to a retirement fund. Contributions are tax deducible for the business.
✔✔Simplified Employee Pension Plan (SEP) - ✔✔Simpler to create and operate than a
Keogh plan.
✔✔Pay in/Accumulation phase - ✔✔Owner sends money to the insurance company
, ✔✔Pay out phase/ Distribution phase - ✔✔When the insurance company pays the
beneficiary
✔✔Non-forfeiture value - ✔✔the amount of the cash value account
that the Insurer would have to pay if the Annuity owner, during the pay-in phase, stops
making payments, decides to surrender the Annuity, or dies. Surrendering the Annuity
prior to age 59 ½ may result in taxes being due on the
growth plus a 10% penalty
✔✔Single premium annuity - ✔✔One time payment.
✔✔Level (Fixed) premium annunity - ✔✔Regular payments. Common way for a worker
to fund a retirement annuity.
✔✔Flexabile premium annunity - ✔✔Flexible premiums and the insurer has not agreed
to any set level of future benefits.
✔✔Immediate annuity - ✔✔Starts as soon as it is purchased. Only used with single
premium pay-ins.
✔✔Deferred Annuity - ✔✔Postponed payouts
✔✔Lump Sum annuity - ✔✔Lump sum payment. Tax deferred growth becomes taxable
when it leaves the annuity. IF before 59 1/2, 10% premature removal tax.
✔✔Annuity certain options - ✔✔Either the time period payments will be received or the
amount of each payment, to be decided by the annuitant.
✔✔Fixed Period Annuity Certain - ✔✔The Annuity is paid out of a specified period of
time
✔✔Fixed amount annuity certain - ✔✔The annuity pays a specified amount until the
funds are exhausted
✔✔Life annuity - ✔✔Payments every month as long as the beneficiary is alive. The
insurer determines the monthly payment based on a number of factors.
✔✔Straight life annuity - ✔✔Pays a set amount until the annuitant dies. This is the
default annuity.
✔✔Life annuity with period certain - ✔✔Same as life annuity, but payments will continue
to be paid even if annuitant dies for a specified period of time
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Profit sharing pension plans - ✔✔Employees receive a potion of company profits.
Contributions vary at the companies discretion. Contributions must be "reoccurring and
substantial".
✔✔Defined benefit pension plans - ✔✔Guaranteed specific retirement benefit paid for
by employer. Formula determines how much is received by employee.
✔✔Defined contribution pension plans - ✔✔Employer contributes a specific amount
each year to the plan. Employee is responsible for choosing the investment from
choices offered by the retirement plan service. Must be funded regardless of company
profits.
✔✔Keogh (HR 10) plan - ✔✔Self-Employed person can contribute a specified amount
to a retirement fund. Contributions are tax deducible for the business.
✔✔Simplified Employee Pension Plan (SEP) - ✔✔Simpler to create and operate than a
Keogh plan.
✔✔Pay in/Accumulation phase - ✔✔Owner sends money to the insurance company
, ✔✔Pay out phase/ Distribution phase - ✔✔When the insurance company pays the
beneficiary
✔✔Non-forfeiture value - ✔✔the amount of the cash value account
that the Insurer would have to pay if the Annuity owner, during the pay-in phase, stops
making payments, decides to surrender the Annuity, or dies. Surrendering the Annuity
prior to age 59 ½ may result in taxes being due on the
growth plus a 10% penalty
✔✔Single premium annuity - ✔✔One time payment.
✔✔Level (Fixed) premium annunity - ✔✔Regular payments. Common way for a worker
to fund a retirement annuity.
✔✔Flexabile premium annunity - ✔✔Flexible premiums and the insurer has not agreed
to any set level of future benefits.
✔✔Immediate annuity - ✔✔Starts as soon as it is purchased. Only used with single
premium pay-ins.
✔✔Deferred Annuity - ✔✔Postponed payouts
✔✔Lump Sum annuity - ✔✔Lump sum payment. Tax deferred growth becomes taxable
when it leaves the annuity. IF before 59 1/2, 10% premature removal tax.
✔✔Annuity certain options - ✔✔Either the time period payments will be received or the
amount of each payment, to be decided by the annuitant.
✔✔Fixed Period Annuity Certain - ✔✔The Annuity is paid out of a specified period of
time
✔✔Fixed amount annuity certain - ✔✔The annuity pays a specified amount until the
funds are exhausted
✔✔Life annuity - ✔✔Payments every month as long as the beneficiary is alive. The
insurer determines the monthly payment based on a number of factors.
✔✔Straight life annuity - ✔✔Pays a set amount until the annuitant dies. This is the
default annuity.
✔✔Life annuity with period certain - ✔✔Same as life annuity, but payments will continue
to be paid even if annuitant dies for a specified period of time
