Life & Health Insurance Exam Colorado Questions & Answers 2024 ( A+ Graded 100% Verified)

Life Income with Refund {Ans: -Type of Annuity pay-out option -If annuitant dies before recovering all monies, refund goes to beneficiary -Beneficiary may choose cash refund or installment refund -Will pay as long as annuitant lives}Annuity Pay-Out Options {Ans: -Contractual; cannot be changed once selected -Amount received in excess of cost are taxable as ordinary income -For life -Cash surrender under age 59.5 subject to IRS 10% penalty -Non-qualified=Funded with after tax dollars}Life Income with Period Certain {Ans: -Type of ---Annuity Pay out-option -5,10,15, or 20 years-----TEST -Guarantees PMT's -Longer the period certain, the lower the monthly PMT -Has beneficiary during the period certain only -Less risk than life income option, payout lower -Doesn't guarantee all monies, just those that would have been paid out during the certain period}Producer {Ans: = Agent}Payor Benefit Rider {Ans: -Type of Insurance Rider -Added to policy on child -Waives premium if payor dies or becomes disabled -Expires when child reaches age 18-----TEST}General Features of Annuities {Ans: -Always have beneficiary during the pay-in or accumulation period -May or may not have a beneficiary during the pay-out or annuity period -During pay-out period all Pmt's are for the life of