Which of the Following Is True Regarding Variable Annuities

The best answer is C. Which of the following is true regarding variable annuities.

Variable Annuities Offer Buyers A Range Of Investment Choices Annuity Investing Variable Annuities

Every time you earn interest you lock in your gains.

. Can be sold by producers holding only a life insurance license. The Annual Reset Strategy is. Annuity payments fluctuate with market values of the stock markety C.

Which statement is TRUE regarding a variable annuity offering a GMIB. The variable annuity contract comes under federal and state securities laws. Can you lose money with a variable annuity.

Your money fluctuates with the broader markets and your returns can vary. The company guarantees a minimum interest rate. Which statements are true about variable annuities.

The of annuity units rises once annuitization begins. You never lose money that you have earned. Value of a variable annuity is reported in terms of accumulation units b.

Variable annuities come with greater short-term volatility. The of accumulation units is always fixed throughout the accumulation period. If a level term policy insurance policy renews at the end of a specified period of time the policy premium will be.

Lock-In Your Gains And Never Lose Them. The annuitant assumes the risks on investment 3. Looking for an answer to the question.

The may have a higher rate of return than fixed annuities sometimes. The other 3 statements are not true of variable annuities. A Both are subject to mar ket risk B Both are long-term investments C Both have tax deferred earnings D Both generally provide active professional investment management.

All of the following are true regarding variable annuities EXCEPT. You can lose money in a Variable Annuity. A person selling variable annuities is required to have only a life agents license 2.

Which of the following statements are TRUE with regard to variable annuities. On this page we have gathered for you the most accurate and comprehensive information that will fully answer the question. But the return is variable and could just as well be lower.

It is an optional rider offered by many variable annuity contracts. A GMIB is a Guaranteed Minimum Income Benefit. Investment risk in a variable annuity is carried by the purchaser The issuer gives an expense guarantee limiting the amount of expenses that the issuer can charge against the contract.

But some investors are willing to take on this risk for greater potential returns. With regard to mutual funds and variable annuities all of the following are TRUE statements EXCEPT. Which statements are true about variable annuities.

Unlike a fixed annuity variable annuities dont offer any guaranteed return on your principal investment. The annuitants monthly payment will not fluctuate during the annuity period. Variable annuity characteristics 1 Underlying Investment - the payments that annuitant makes into the varibe annuity are invested in the insurers separate account not their general account.

Annuity owners will pay a portion of variable annuity expenses in a fixed index annuity. All of the following statements regarding variable annuities are true EXCEPT. The value of the owners account may fluctuate during the accumulation period.

The best variable annuities are flexible meaning. During the accumulation period the investor would be purchasing annuity units Your clients annuity has a portfolio that contains mostly common stocks. Variable annuities are considered to be securities because the purchaser bears the.

Based on the issue age of the insured. Which statements are true about variable annuities. Variable annuities are a potential hedge against inflation X d.

2Interest Rates - issuing insurance company does not guarantee a minimum interest rate. Variable annuities have tax-deferred treatment of earnings. D variable annuities offer the investor protection against capital loss.

To sell variable annuities both an insurance and a securities registration are required. B variable annuities are classified as insurance products. A variable annuities may only be sold by registered representatives.

The funds are invested in the companys general account 4. All of the following are TRUE regarding a Variable Annuity except. Variable annuities are investment-based retirement plans.

Upon annuitization accumulation units are converted into annuity units which generate income based on the value of the units. Premiums paid during the accumulation period are invested into a separate account s B. Determined by the health of the insured.

Regarding variable annuities which of the following statements is incorrect. Which of the following statements regarding variable annuities are TRUE. Choose from the following options 1.

C insurance companies keep variable annuity funds in separate accounts from other insurance products. The of accumulation units can rise during the accumulation period. The of annuity units is fixed at the time of annuitization.

Adjusted to the insureds age at the time of renewal.

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