XCEL STATE SIMULATOR EXAM (LIFE
& HEALTH) 2025/2026 BANK | ALL
FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS |
ACCURATE AND VERIFIED FOR
GUARANTEED PASS | ALREADY
GRADED A+
Lisa has recently bought a fixed annuity. Which of these is
considered to be a disadvantage of owning this type of
annuity?
A) Payments cease 5 years after the annuitant's death
B) During periods of inflation, annuitants will experience
an increase in purchasing power of their payments
C) During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
D) Payment amounts can be unpredictable from month to
month - ....ANSWER...C) During periods of inflation,
,annuitants will experience a decrease in purchasing power
of their payments
An annuity is primarily used to provide
A) retirement income
B) disability income
C) long-term care benefits
D) death benefits - ....ANSWER...A) retirement income
Which of these will have the highest monthly payout upon
annuitization?
A) Life with period certain
B) Joint and survivor life
C) Straight life
D) Joint life - ....ANSWER...C) Straight life
,Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is
seeking is called
A) variable payout
B) fixed accumulation
C) interest guaranteed
D) annuity certain - ....ANSWER...D) annuity certain
How are annuities given favorable tax treatment?
A) Gains are tax deductible
B) Gains are tax exempt at distribution
C) Gains are taxed at distribution
D) Gains are converted to tax credits - ....ANSWER...C)
Gains are taxed at distribution
Which type of annuity stops all payments upon the death
of the annuitant?
A) Life annuity
, B) Period certain annuity
C) Cash refund annuity
D) Joint and survivor annuity - ....ANSWER...A) Life
annuity
The systematic liquidation of a sum of money is provided
by a(n)
A) annuity
B) endowment contract
C) life insurance policy
D) 1035 contract exchange - ....ANSWER...A) annuity
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called a(n)
A) immediate annuity
B) deferred annuity
C) endowment
D) whole life policy - ....ANSWER...B) deferred annuity
& HEALTH) 2025/2026 BANK | ALL
FREQUENTLY TESTED ACTUAL EXAM
QUESTIONS AND ANSWERS |
ACCURATE AND VERIFIED FOR
GUARANTEED PASS | ALREADY
GRADED A+
Lisa has recently bought a fixed annuity. Which of these is
considered to be a disadvantage of owning this type of
annuity?
A) Payments cease 5 years after the annuitant's death
B) During periods of inflation, annuitants will experience
an increase in purchasing power of their payments
C) During periods of inflation, annuitants will experience a
decrease in purchasing power of their payments
D) Payment amounts can be unpredictable from month to
month - ....ANSWER...C) During periods of inflation,
,annuitants will experience a decrease in purchasing power
of their payments
An annuity is primarily used to provide
A) retirement income
B) disability income
C) long-term care benefits
D) death benefits - ....ANSWER...A) retirement income
Which of these will have the highest monthly payout upon
annuitization?
A) Life with period certain
B) Joint and survivor life
C) Straight life
D) Joint life - ....ANSWER...C) Straight life
,Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is
seeking is called
A) variable payout
B) fixed accumulation
C) interest guaranteed
D) annuity certain - ....ANSWER...D) annuity certain
How are annuities given favorable tax treatment?
A) Gains are tax deductible
B) Gains are tax exempt at distribution
C) Gains are taxed at distribution
D) Gains are converted to tax credits - ....ANSWER...C)
Gains are taxed at distribution
Which type of annuity stops all payments upon the death
of the annuitant?
A) Life annuity
, B) Period certain annuity
C) Cash refund annuity
D) Joint and survivor annuity - ....ANSWER...A) Life
annuity
The systematic liquidation of a sum of money is provided
by a(n)
A) annuity
B) endowment contract
C) life insurance policy
D) 1035 contract exchange - ....ANSWER...A) annuity
A savings vehicle designed to first accumulate funds and
then systematically liquidates the funds is called a(n)
A) immediate annuity
B) deferred annuity
C) endowment
D) whole life policy - ....ANSWER...B) deferred annuity
