Annuities and Insurance-related Concepts Quiz
Test your knowledge on annuities, insurance premiums, riders, and more. Learn key concepts in actuarial science with these quiz questions.
#1
What is an annuity?
A type of insurance policy
A series of payments made at regular intervals
A one-time lump sum payment
An investment that guarantees high returns
#2
What does 'premium' refer to in insurance?
The total amount of coverage provided
The amount of money paid for coverage
The duration of the insurance policy
The deductible amount
#3
What is the purpose of a death benefit in life insurance?
To provide income during retirement
To pay for medical expenses
To provide financial protection to beneficiaries upon the death of the insured
To accumulate cash value over time
#4
What is a rider in insurance?
A type of investment attached to an annuity
An amendment or addition to an insurance policy that modifies its terms
The agent who sells insurance policies
A type of life insurance policy
#5
What is the purpose of a beneficiary designation in insurance?
To determine the premium amount
To select the insurance company
To specify who receives the policy benefits upon the insured's death
To decide the coverage amount
#6
What is the purpose of an insurance deductible?
To increase the premium amount
To decrease the coverage amount
To reduce the insured's financial responsibility in a claim
To determine the beneficiary
#7
What is the difference between term life insurance and whole life insurance?
Term life insurance has no expiration date, while whole life insurance does.
Term life insurance builds cash value over time, while whole life insurance does not.
Whole life insurance provides coverage for a specific term, while term life insurance does not.
Whole life insurance offers more flexibility in premium payments than term life insurance.
#8
What is an immediate annuity?
An annuity that starts paying out after a certain period
An annuity that pays out immediately after it is purchased
An annuity that offers flexible payment options
An annuity that provides coverage for medical expenses
#9
What is the surrender value of an insurance policy?
The amount paid to the beneficiary upon the death of the policyholder
The amount of cash value available to the policyholder if they terminate the policy before maturity
The premium amount required to keep the policy active
The maximum coverage provided by the policy
#10
What is an annuity's 'accumulation phase'?
The period when the annuitant receives periodic payments
The period when the annuity's cash value grows through contributions and investment returns
The duration of time for which an annuity contract is valid
The period when the annuitant selects beneficiaries
#11
What is a joint-life annuity?
An annuity that covers the life of a single individual
An annuity that pays out only after the death of the annuitant
An annuity that provides income for two or more beneficiaries
An annuity that allows for variable investment options
#12
What is the difference between a fixed annuity and a variable annuity?
Fixed annuities offer a guaranteed interest rate, while variable annuities do not.
Variable annuities provide a fixed income stream, while fixed annuities offer variable payments.
Fixed annuities are tax-free, while variable annuities are taxable.
Variable annuities have higher surrender charges than fixed annuities.
#13
What is the 'annuitization phase' in an annuity?
The period during which premiums are paid
The process of converting the accumulated value of an annuity into a series of periodic payments
The period when the annuity holder can withdraw funds without penalties
The phase when the annuity holder can change beneficiaries
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Actuarial Science
Popular Quizzes in Finance
Report