Types of Policies
What primary guarantee is provided to the owner of a fixed annuity contract during the accumulation phase?
Answer and explanation
Answer: B. Fixed annuities guarantee principal preservation and a minimum interest rate backed by the insurer's general account.Source: NAIC Annuity Buyer's Guide — PDF page 3, Fixed Annuities
More types of policies questions
- As an ordinary whole life policy matures over time and cash values increase, what happens to the insurer's net amount at risk?
- At what point does a standard ordinary whole life policy reach its ultimate maturity date?
- Before buying variable life, an applicant wants authoritative product-specific details about fees, investment options, and death-benefit features. Which document should the applicant request?
- Compared with standard level term for the same face amount, how does return-of-premium term usually price the added refund feature?
- Despite investment performance fluctuations in a variable whole life policy, what minimum guarantee does the insurer provide?
- During which annuity phase does the contract value grow before scheduled income payments begin?
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