Types of Policies
Which feature is characteristic of a fixed deferred annuity?
Answer and explanation
Answer: C. A fixed deferred annuity guarantees at least the contract’s minimum interest rate, although the insurer may credit more. Owner-selected fund performance characterizes variable annuities, and an indexed annuity does not give the owner direct index ownership.Source: NAIC — Buyer’s Guide for Deferred Annuities — Guide page 4, How Does the Value of a Deferred Annuity Change? > Fixed Annuities
More types of policies questions
- A policyowner’s income varies and the owner wants to adjust premium timing within policy limits while keeping permanent coverage. Which product feature most directly addresses that need?
- A prospect wants permanent insurance with adjustable policy elements and cash value allocated to insurer-managed separate-account investments. Which product is the best fit?
- A prospect wants permanent life insurance, wants to choose among stock and bond investment options, and accepts possible cash-value loss. Which product best fits?
- A renewable term policy states that renewal rights end at a specified age. The insured reaches that age and wants another term. Which statement is most accurate?
- A retiree hands an insurer a single premium and wants income payments to start about one month later. Which annuity fits?
- A retiree makes one annuity purchase payment and wants income payments to begin within the next year. Which classification applies?
590 Texas questions like this one.
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