Annuities and Contractual Features Quiz
Test your knowledge on annuities with questions about contract features, surrender periods, riders, annuitization, and more.
#1
What is an annuity?
A one-time lump sum payment
A series of periodic payments made at equal intervals
A type of insurance policy
An investment with high risk
#2
Which of the following is a feature of a fixed annuity?
Guaranteed minimum interest rate
Interest rate tied to market performance
No guaranteed payments
Variable payments
#3
What is the surrender period in an annuity contract?
The period during which withdrawals are not allowed without penalty
The period when the annuity matures
The period when annuity payments start
The period when premium payments are made
#4
Which type of annuity provides payments until the death of the annuitant?
Immediate annuity
Deferred annuity
Life annuity
Fixed annuity
#5
What is the key characteristic of a deferred annuity?
Immediate payments after purchase
Payments start after a certain period
Payments vary with market performance
Guaranteed lifetime payments
#6
What is a rider in an annuity contract?
A person who receives annuity payments
A provision that can be added to the contract for an additional cost
A type of annuity investment
A financial advisor selling annuities
#7
What is the purpose of annuitization?
To calculate surrender charges
To convert the annuity's accumulated value into a stream of income
To increase the annuity's death benefit
To reduce the annuity's fees
#8
What is a joint and survivor annuity?
An annuity that only pays one individual
An annuity that pays multiple individuals but stops after the death of one
An annuity that continues to pay as long as one annuitant is alive
An annuity with no survivor benefits
#9
What is a market value adjustment (MVA) in the context of annuities?
An adjustment to annuity payments based on market fluctuations
An adjustment to annuity death benefits based on market performance
An adjustment to the annuity's surrender value based on changes in interest rates
An adjustment to annuity fees based on market conditions
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