Annuities
What does a guaranteed minimum withdrawal benefit provide?
Answer and explanation
Answer: A. A guaranteed minimum withdrawal benefit assures the owner a stated level of withdrawals regardless of how the underlying value performs, which is why it is bought against market risk. Index floors, charge waivers, and rate guarantees are separate features.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, guaranteed minimum withdrawal benefit
More annuities questions
- A buyer wants to fund an annuity gradually over working life and take income at retirement. Which design fits?
- A contract holder elects to begin receiving income. Which phase has begun?
- A deferred annuity stops building value for future income and begins making scheduled income payments. Which phase has begun?
- A fixed annuity states a minimum rate and a current rate. What is the difference?
- A married couple wants annuity income to continue while either of them lives. Which option fits?
- A worker buys an annuity at age 45 and plans to begin income at age 65 after years of tax-deferred accumulation. Which classification best fits?
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