How to Structure an Annuity Contract
WebCE Comprehensive Questions
(Frequently Tested) with Verified
Answers
Which term refers to structured payouts that will liquidate an annuity's invested premiums and
accumulated earnings over some period of time? - Answer: annuitization
At Eileen's death, Winthrop received the death benefit payable under Eileen's annuity and
chose to continue the contract in his name and continue to accrue tax-deferred accumulations.
What was Winthrop's relation to Eileen? - Answer: He was her spouse.
What kind of annuity serves exclusively as a means to liquidate a principal sum and pay out an
income stream? - Answer: immediate annuity
Wilson is considering the purchase of a deferred annuity and will have to decide who to name
as beneficiary of the contract's death benefit. Who among the following would be able to
assume direct ownership of the annuity if Wilson were to die? - Answer: Wilson's wife, Beverly
Charlie owns a deferred annuity. At the end of the contract's first interest crediting term, the
insurer credits the contract with a 6 percent rate of return, based on the performance of the
S&P 500 over that period. What kind of annuity does Charlie own? - Answer: an indexed annuity
The distinction between an owner-driven annuity contract and an annuitant-driven annuity
contract pertains primarily to: - Answer: whose death triggers the contract's death benefit
Years ago, Henry purchased a deferred annuity with a single premium payment of $25,000. He
never took any distributions or withdrawals and today, the annuity's value is $53,000. The
WebCE Comprehensive Questions
(Frequently Tested) with Verified
Answers
Which term refers to structured payouts that will liquidate an annuity's invested premiums and
accumulated earnings over some period of time? - Answer: annuitization
At Eileen's death, Winthrop received the death benefit payable under Eileen's annuity and
chose to continue the contract in his name and continue to accrue tax-deferred accumulations.
What was Winthrop's relation to Eileen? - Answer: He was her spouse.
What kind of annuity serves exclusively as a means to liquidate a principal sum and pay out an
income stream? - Answer: immediate annuity
Wilson is considering the purchase of a deferred annuity and will have to decide who to name
as beneficiary of the contract's death benefit. Who among the following would be able to
assume direct ownership of the annuity if Wilson were to die? - Answer: Wilson's wife, Beverly
Charlie owns a deferred annuity. At the end of the contract's first interest crediting term, the
insurer credits the contract with a 6 percent rate of return, based on the performance of the
S&P 500 over that period. What kind of annuity does Charlie own? - Answer: an indexed annuity
The distinction between an owner-driven annuity contract and an annuitant-driven annuity
contract pertains primarily to: - Answer: whose death triggers the contract's death benefit
Years ago, Henry purchased a deferred annuity with a single premium payment of $25,000. He
never took any distributions or withdrawals and today, the annuity's value is $53,000. The
