Annuities
An annuity owner dies during the accumulation period. What ordinarily happens?
Answer and explanation
Answer: B. A deferred annuity ordinarily provides a death benefit during accumulation, payable to the beneficiary on the terms the contract sets. The value is not forfeited to the insurer, and income does not begin by itself on a death.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, annuity death benefits
More annuities questions
- What does a nonforfeiture provision give an annuity owner who stops paying?
- What does selling a variable annuity require beyond a New York life license?
- What happens during the accumulation period of a deferred annuity?
- What is the tax feature that makes annuities attractive for retirement saving?
- What risk does a life annuity protect the annuitant against?
- Where are the assets backing a fixed annuity held?
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