Types of Policies
What type of annuity is purchased with a single lump-sum payment and defers payouts until a specified future date?
Answer and explanation
Answer: A. An SPDA is funded with one lump sum payment, accumulating earnings until a future annuitization date.Source: NAIC Annuity Buyer's Guide — PDF page 3, SPDA Definition
More types of policies questions
- 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?
- How are accumulation units converted in a variable annuity when the contract owner chooses to annuitize?
- How do premiums behave over time in a typical decreasing term life policy?
- How does a life annuity with 10-year period certain settlement option protect beneficiaries?
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