Types of Policies
An annuity owner wants income payments for as long as the owner lives, without adding a spouse or a minimum payment period. Which payout basis matches that request?
Answer and explanation
Answer: B. A lifetime payout matches the request for payments tied only to the owner’s life. The other choices add a fixed period, a spouse, or both, which the owner expressly did not request.Source: NAIC — Buyer’s Guide for Deferred Annuities — Guide page 8, Payout Options
More types of policies questions
- When does a survivorship life (second-to-die) policy pay its death benefit?
- When is a second-to-die life policy’s death benefit triggered?
- Which combination of features defines a variable universal life (VUL) contract?
- Which combination of features most clearly signals variable universal life rather than ordinary whole life?
- Which description best distinguishes indexed universal life from variable universal life?
- Which description best matches a standard decreasing term life policy?
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