1928 Essex Super Six Value, 7 Reasons Why We Take Communion, Articles A

D)Municipal bonds. Question #41 of 48Question ID: 606801 D)variable annuities. D) tax free. Question #31 of 48Question ID: 606836 The $30,000 contract value represents $10,000 of contributions and $20,000 of earnings. The growth portion is taxed as a capital gain. Fixed annuities pay a fixed monthly benefit which loses purchasing power if there is inflation. \hspace{10pt} \text{Office salaries} & \underline{234,000} & \hspace{10pt} \text{Medicare tax withheld} & 15,210\\ B) The policyowner. . The value of the customer's account is converted into annuity units if and when the customer decides to annuitize the contract. The most suitable option and one considered effective for married couples is a single joint and last survivor contract. Periodic payment deferred annuity. D) A 10% penalty plus the payment of ordinary income tax on funds withdrawn in excess of the owner's basis. He makes several statements regarding the contract. Future annuity payments will vary according to the separate account's performance. This recommendation is: D) unsuitable because her situation exposes her to surrender charges and early withdrawal penalties in exchange for insufficient benefits. the state insurance commission. 6102..55.001) is being updated on an ongoing basis. A) a variable annuity contract will provide a fluctuating monthly check upon the annuitization of the contract variable An immediate annuity consists of a Single Premium T has an annuity that guarantees an income payment for the rest of his life. order now. Since the client is older than 59 at the time of distribution, the additional 10% penalty tax is not incurred. Variable annuities grow tax-deferred, so you dont have to pay taxes on any investment gains until you begin receiving income or make a withdrawal. It was a lump-sum purchase. Single payment deferred annuity. Clusters of vesicles in various stages. Practice all cards. The value of the annuity units is fixed. "Variable Annuities: What You Should Know," Pages 67. An annuity may be purchased under all of the following methods EXCEPT: A) I and II A variable annuity is a type of annuity contract the value of which can vary based on the performance of an underlying portfolio of sub accounts. None of the other investments listed here offer tax-deferred growth. required to be located off of the company's premises. A) taxed at a reduced rate. What is the annual cash flow generated from the new machine? This makes a total of $4,000 tax and penalty paid on the random withdrawal. The number of annuity units rises once annuitization begins. Reference: 12.1.2.1.1 in the License Exam. Reference: 12.1.2 in the License Exam, Question #21 of 48Question ID: 606812 *A joint life with last survivor contract covers multiple annuitants and ceases payments at the death of the last surviving annuitant. A registered person recommends the purchase of a variable annuity to one of his clients. The separate account is NOT likely to invest in: Many variable annuities invest the separate account in mutual funds. D) None, because it is the proceeds from a life insurance company. Reference: 12.1.4.2 in the License Exam. C) value of underlying securities held in the separate account. B) Exchange traded Funds (ETFs) or Exchange traded Notes (ETNs) *Payments from a variable annuity depend on the securities' value in the separate account's underlying investment portfolio. For example, when paying rent, the rent payment (PMT) C) with guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is guaranteed B) During the accumulation period. The number of annuity units is fixed at the time of annuitization. *Mortality risk- If an annuitant lives longer than expected, the insurance company will have to continue payments longer than expected. If the annuitant should die during that time, any death benefit would be paid to a beneficiary designated by the annuitant at the time the annuity was purchased. B) with guaranteed minimum withdrawal benefits (GMWBs) the periodic payments can be monthly, quarterly or annually a) What percentage of Facebook's users are from the United States? vote for the investment adviser. *Variable annuity contracts were devised to help investors keep pace with inflation. The paper publication will not be rereleased. D) II and IV. The fixed payment that the annuitant receives loses purchasing power over time as a result of inflation. If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding: However, at the end of the period certain the payments to the named beneficiary (the spouse) will stop. C) 100% tax free. *Universal variable life policies are insurance company products that should be purchased primarily for the insurance features they offer rather than as an investment. A) be paid to a designated beneficiary. Which of the following statements regarding variable annuities are TRUE? The investor has already paid tax on the contributions but the earnings have grown tax-deferred. D)suitable if she has enough equity in the home to fund the variable annuity without cashing out the other VA contract, Based on the information given in the question, the VA recommendation would not be suitable. A)accumulation shares. None of the other investments listed here offer tax-deferred growth. IV. The following information about the payroll for the week ended December 303030 was obtained from the records of Vienna Co.: Salaries:Deductions:Salessalaries$670,000Incometaxwithheld$198,744Warehousesalaries110,000Socialsecuritytaxwithheld51,714Officesalaries234,000Medicaretaxwithheld15,210$1,014,000U.S. D)separate account may consist of mutual funds. Your 65-year-old client owns a nonqualified variable annuity. Life with period certain will produce a smaller check for life because the insurance company will guarantee payments to a beneficiary for a certain period of time designated in the contract should the annuitant die within that period. D)an accounting measure used to determine payments to the owner of the variable annuity. *An immediate annuity has no accumulation period. D) I and IV. Variable annuity salespeople must register with all of the following EXCEPT: Which of the following are defined as securities? Sub accounts and mutual funds are conceptually. Fixed Annuity: A fixed annuity is a type of annuity contract that allows for the accumulation of capital on a tax-deferred basis. A the safety of the principal invested B the yield is always higher than bond yields. Travel Times Journal found that the average per person cost of a 10-day trip along the Pacific coast, per person, is $1,015. The anti-money laundering rules for insurance companies highlight that each insurance company - like other financial institutions subject to anti-money laundering program requirements - must develop a risk-based anti-money laundering program that identifies, assesses, and mitigates any risks of money laundering, terrorist financing, and other C)Variable annuity contract with a discussion regarding interest rate risk C) There is no tax as the withdrawal is considered return of capital. The time period depends on how often the income is to be paid. The beneficiary is taxed at ordinary income rates during the year the lump sum is received. The correct answer was: partially a tax-free return of capital and partially taxable. Reference: 12.3.3 in the License Exam. View full document. Your 55-year-old client invested $50,000 four years ago in a nonqualified variable annuity. are purchased primarily for their insurance features One of the following would achieve that objective but a suitability discussion regarding it's risk should also occur. This customer has no spouse or dependents, which negates the value of the death benefit. D)the state insurance department. The second phase is triggered when the annuity owner asks the insurer to start the flow of income, often referred to as the payout phase. D) Variable annuities. Spartan Technology Services and Solutions Private Limited is a subsidiary of IBM (International Business Machines) Corporation. guarantees payments for a certain period of time. vote on proposed changes in investment policy. Of the four client profiles below which might be the best suited for a variable annuity recommendation? A customer has contributed $1,000 a year for 10 years to his tax-deferred nonqualified variable annuity. Which of the following is characteristic of variable annuities? All of the following statements about variable annuities are true EXCEPT: Question #27 of 48Question ID: 606818 The owner of a life annuity with 10-year period certain will receive payments for life, subject to a minimum of 10 years. Annuities due are a type of annuity where payments are made at the beginning of each payment period. D)with guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is guaranteed, With guaranteed minimum withdrawal benefits (GMWBs) a lifetime of periodic payments is not guaranteed because payments stop when the annuitant has received an amount equal to the principal account value or the contract term ends. A joint life with last survivor contract covers multiple annuitants and ceases payments at the death of the last surviving annuitant. Determine the revenue equation given the profit and expense equations. Round to the nearest hundredth of a percentile. (primary needs). What is her total tax liability? C)I and III. Post navigation When the second party dies, all payments cease. The value of the customer's account is converted into annuity units if and when the customer decides to annuitize the contract. B)II and III. B) Municipal bonds. D) Variable annuity. A) not suitable Distribution can take place before or during any solicitation for sale. \hspace{10pt} Federal unemployment (employer only), 0.8%0.8\%0.8%. The accumulation unit's value is used to calculate the total value of the account. B) I and III. A prospectus for a variable annuity contract: How Good of a Deal Is an Indexed Annuity? The $30,000 contract value represents $10,000 of contributions and $20,000 of earnings. \hspace{10pt} State unemployment (employer only), 3.8%3.8\%3.8% A variable annuity is a long term investment issued by an insurance company that can help you grow your money, take income in retirement and pass on your wealth. Variable annuities involve underlying equity investments in a separate account. II. B)100% taxable. Once annuitized, the number of annuity units does not vary. *When money is deposited into the annuity, it is purchasing accumulation units. C)Keogh plans. D) II and IV. Reference: 12.1.4.1 in the License Exam. D) minimum guaranteed death benefit. With a fixed annuity, by contrast, the insurance company assumes the risk of delivering whatever return it has promised. D) Two-thirds of the withdrawal is taxable as ordinary income. B)part earnings and part cost basis Premiums made into the annuity purchase accumulation units. For this potential advantage, the investor, rather than the insurance company, assumes the investment risk. The number of annuity units varies. D) expense guarantee. U.S. Securities and Exchange Commission.