XCEL CHAPTER 8 EXAM 2025
QUESTIONS AND ANSWERS
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - ANS Annuitization phase
Which of these annuities require premium payments that vary from year to year? -
ANS Flexible premium deferred annuity
What happens to interest earned if the annuitant dies before the payout start date? - ANS It
is taxable
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these
benefit options would he choose? - ANS Guaranteed lifetime withdrawal benefit
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement? - ANS Premiums paid plus interest earned is returned to the beneficiary
Who assumes the investment risk with a fixed annuity contract? - ANS The insurer
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of
owning this type of annuity? - ANS During periods of inflation, annuitarts will experience a
decrease in purchasing power of their payments
Under a non-qualified annuity, interest is taxed after the - ANS exclusion ratio has been
calculated
1 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
Which of the following is considered to be the period when the accumulated value in an
annuity is paid out? - ANS Annuitization phase
Which of these annuities require premium payments that vary from year to year? -
ANS Flexible premium deferred annuity
What happens to interest earned if the annuitant dies before the payout start date? - ANS It
is taxable
Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these
benefit options would he choose? - ANS Guaranteed lifetime withdrawal benefit
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE
statement? - ANS Premiums paid plus interest earned is returned to the beneficiary
Who assumes the investment risk with a fixed annuity contract? - ANS The insurer
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of
owning this type of annuity? - ANS During periods of inflation, annuitarts will experience a
decrease in purchasing power of their payments
Under a non-qualified annuity, interest is taxed after the - ANS exclusion ratio has been
calculated
1 @COPYRIGHT THEBRIGHT 2025/2026
