Income Intermediate: Fixed Annuities

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
Since you may die before you collect the full value of your annuity through the life annuity option, it is better to select an option with a period certain provision.
Choose wisely. There is only one correct answer.
False. Though this could be true, it really depends upon one's objectives. Each option has benefits and tradeoffs.
2.
When you annuitize, you are paying into your annuity account.
Choose wisely. There is only one correct answer.
False. When you annuitize, you begin receiving income from your annuity.
3.
Your monthly income from a fixed annuity is based on _______.
Choose wisely. There is only one correct answer.
Your age and your sex. Your age and sex are two factors that determine the monthly payment you receive from an annuity. "The value of your investments" indicates a variable annuity.
4.
The earnings on fixed annuities are free from taxes until you annuitize.
Choose wisely. There is only one correct answer.
True. Annuity income is tax-deferred.
5.
What is taxed during the accumulation period of a non-qualified annuity?
Choose wisely. There is only one correct answer.
Annuity contributions. The income you contribute to a non-qualified annuity is subject to taxation during the accumulation period. A non-qualified annuity is one that is outside of a retirement plan.