WEBCE FINAL PAPER 2026 QUESTIONS WITH
ANSWERS 100% CORRECT
◉ At what point does the beneficiary to an annuity acquire rights in the
contract? Answer: (Wrong) upon contract issue and throughout the life
of the contract, until the death of the contract owner or annuitant
◉ Generally speaking, how long is the accumulation period for
immediate annuities? Answer: one month to one year
◉ For which of the following needs are traditional deferred annuities
best suited? Answer: retirement planning
◉ For what reason would an individual choose a variable annuity over a
fixed annuity? Answer: for the potential to earn greater contract growth
◉ At the time he purchased his variable annuity, Ahmed directed $5,000
of his premium into Subaccount A when the unit value was $10. A year
later, the unit value had increased to $15. Assuming he made no
additional premium deposits, what is the value of Ahmed's investment in
Subaccount A now? Answer: $7,500
, ◉ For most indexed annuities, what is the specified floor? Answer: 0
percent
◉ Which feature of indexed annuities prevents any negative index
returns from affecting the contract's previously credited and accumulated
values? Answer: the floor
◉ At the age of 42, Steve purchased a fixed deferred annuity from Mega
Mutual Life with a single premium deposit of $10,000. The declared
interest rate on Steve's contract when it was issued was 5 percent, and
the contract guarantees a minimum rate of 3 percent. The initial declared
rate is payable for two years; the renewal rate for year three and later is
subject to change. How much interest will be credited to Steve's contract
at the end of year one? Answer: $500
◉ For an indexed annuity, what is credited to the contract at the end of
each interest crediting term? Answer: (Wrong) the index interest rate
◉ Darcy owns an indexed annuity. The index that supports her annuity
was at 1000 when the contract's interest crediting period began and 1200
when the crediting period ended. What is the index increase? Answer: 20
percent
◉ What covers the cost of a variable annuity's death benefit? Answer:
the mortality and expense charge
ANSWERS 100% CORRECT
◉ At what point does the beneficiary to an annuity acquire rights in the
contract? Answer: (Wrong) upon contract issue and throughout the life
of the contract, until the death of the contract owner or annuitant
◉ Generally speaking, how long is the accumulation period for
immediate annuities? Answer: one month to one year
◉ For which of the following needs are traditional deferred annuities
best suited? Answer: retirement planning
◉ For what reason would an individual choose a variable annuity over a
fixed annuity? Answer: for the potential to earn greater contract growth
◉ At the time he purchased his variable annuity, Ahmed directed $5,000
of his premium into Subaccount A when the unit value was $10. A year
later, the unit value had increased to $15. Assuming he made no
additional premium deposits, what is the value of Ahmed's investment in
Subaccount A now? Answer: $7,500
, ◉ For most indexed annuities, what is the specified floor? Answer: 0
percent
◉ Which feature of indexed annuities prevents any negative index
returns from affecting the contract's previously credited and accumulated
values? Answer: the floor
◉ At the age of 42, Steve purchased a fixed deferred annuity from Mega
Mutual Life with a single premium deposit of $10,000. The declared
interest rate on Steve's contract when it was issued was 5 percent, and
the contract guarantees a minimum rate of 3 percent. The initial declared
rate is payable for two years; the renewal rate for year three and later is
subject to change. How much interest will be credited to Steve's contract
at the end of year one? Answer: $500
◉ For an indexed annuity, what is credited to the contract at the end of
each interest crediting term? Answer: (Wrong) the index interest rate
◉ Darcy owns an indexed annuity. The index that supports her annuity
was at 1000 when the contract's interest crediting period began and 1200
when the crediting period ended. What is the index increase? Answer: 20
percent
◉ What covers the cost of a variable annuity's death benefit? Answer:
the mortality and expense charge
