Skip to content

Log In
|
0 items - $0.00

Call (801) 518-1956 | Text (801) 518-5016

Home
Exam Prep
- Utah
- Idaho
- Arizona
- Nevada
Career Network
CE Courses
- Utah
- Idaho
- Arizona
Resources
- Utah Independent Agents (UIA)
FAQ
About Us
- Contact Us
- Our Story
Log In
0 items - $0.00

Uses of Annuities

Time limit: 0

Quiz Summary

0 of 16 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

Congratulations, you passed! Sorry, you did not pass. 0 of 16 questions answered correctly . A passing score is 70% or better.

Categories

Not categorized 0%

You can click the green button to go to the next lesson.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

Current
Review / Skip
Answered
Correct
Incorrect

Question 1 of 16

1. Question

Which of the following is NOT true about a deferred annuity?

They can be used to save money for future education, long-term care, or retirement needs.

They grow tax-deferred.

They can be a safe place to store extra money that is not needed until later.

They are intended for people who have short-term financial goals with an immediate need to use the money.

Correct

Incorrect
Question 2 of 16

2. Question

Isabella was severely injured in a car accident and received lump sum settlement. She decided to exchange the lump sum for an immediate annuity which will provide her with what?

Money that will grow tax-deferred until she decides to annuitize the annuity at a later date

A non-guaranteed death benefit paid to her beneficiary when Isabella dies

A guaranteed death benefit paid to her beneficiary when Isabella dies.

A guaranteed income for a specific number of years—or for the rest of her life.

Correct

Incorrect
Question 3 of 16

3. Question

If a person wants to turn a lump sum into a guaranteed income for a specific number of years—or for the rest of his or her life—that can best be accomplished with which product?

An immediate annuity

A term life insurance policy

A mutual fund

A deferred variable annuity that is not annuitized

Correct

Incorrect
Question 4 of 16

4. Question

When a person receives a substantial amount of money as a result of a legal settlement involving situations such as car accidents, work-related accidents, medical malpractice, and divorce—it is called a what?

Benefit payment option

Lump sum settlement

Insurable interest

Cash surrender value

Correct

Incorrect
Question 5 of 16

5. Question

Which of the following is NOT true about a deferred annuity?

Deferred annuities are intended for people who have long-term financial goals and do not have an immediate need for the money at the time it is placed into the annuity.

The money in a deferred annuity can grow as a result of interest or investment income.

Only banks sell deferred annuities.

A main attraction of deferred annuities is the tax advantage, since the growth is tax-deferred.

Correct

Incorrect
Question 6 of 16

6. Question

When a deferred annuity is combined with an individual retirement account (IRA), it is called a what?

Individual retirement annuity

Modified endowment contract (MEC)

Permanent life insurance that provides cash value

Market value adjusted annuity

Correct

Incorrect
Question 7 of 16

7. Question

If an annuity is combined with a traditional IRA, what is the tax advantage?

There is no tax advantage.

Any premiums paid into the annuity are tax deductible.

Any payments or withdrawals received by the owner or annuitant are tax-free.

Any premiums paid into the annuity are tax deductible, and any payments or withdrawals received by the owner or annuitant are tax-free.

Correct

Incorrect
Question 8 of 16

8. Question

If an annuity is combined with a Roth IRA, what is the tax advantage?

There is no tax advantage.

Any premiums paid into the annuity are tax deductible.

Any payments or withdrawals received by the owner or annuitant are tax-free.

Any premiums paid into the annuity are tax deductible, and any payments or withdrawals received by the owner or annuitant are tax-free.

Correct

Incorrect
Question 9 of 16

9. Question

Isabella was severely injured in a car accident and received lump sum settlement. She decided to exchange the lump sum for an immediate annuity which will provide her with what?

Money that will grow tax-deferred until she decides to annuitize the annuity at a later date

A non-guaranteed death benefit paid to her beneficiary when Isabella dies

A guaranteed death benefit paid to her beneficiary when Isabella dies.

A guaranteed income for a specific number of years—or for the rest of her life.

Correct

Incorrect
Question 10 of 16

10. Question

If a person wants to turn a lump sum into a guaranteed income for a specific number of years—or for the rest of his or her life—that can best be accomplished with which product?

An immediate annuity

A term life insurance policy

A mutual fund

A deferred variable annuity that is not annuitized

Correct

Incorrect
Question 11 of 16

11. Question

When a person receives a substantial amount of money as a result of a legal settlement involving situations such as car accidents, work-related accidents, medical malpractice, and divorce—it is called a what?

Benefit payment option

Lump sum settlement

Insurable interest

Cash surrender value

Correct

Incorrect
Question 12 of 16

12. Question

Which of the following is NOT true about a deferred annuity?

Deferred annuities are intended for people who have long-term financial goals and do not have an immediate need for the money at the time it is placed into the annuity.

The money in a deferred annuity can grow as a result of interest or investment income.

Only banks sell deferred annuities.

A main attraction of deferred annuities is the tax advantage, since the growth is tax-deferred.

Correct

Incorrect
Question 13 of 16

13. Question

When a deferred annuity is combined with an individual retirement account (IRA), it is called a what?

Individual retirement annuity

Modified endowment contract (MEC)

Permanent life insurance that provides cash value

Market value adjusted annuity

Correct

Incorrect
Question 14 of 16

14. Question

If an annuity is combined with a traditional IRA, what is the tax advantage?

There is no tax advantage.

Any premiums paid into the annuity are tax deductible.

Any payments or withdrawals received by the owner or annuitant are tax-free.

Any premiums paid into the annuity are tax deductible, and any payments or withdrawals received by the owner or annuitant are tax-free.

Correct

Incorrect
Question 15 of 16

15. Question

If an annuity is combined with a Roth IRA, what is the tax advantage?

There is no tax advantage.

Any premiums paid into the annuity are tax deductible.

Any payments or withdrawals received by the owner or annuitant are tax-free.

Any premiums paid into the annuity are tax deductible, and any payments or withdrawals received by the owner or annuitant are tax-free.

Correct

Incorrect
Question 16 of 16

16. Question

Which of the following is NOT true about a deferred annuity?

They can be used to save money for future education, long-term care, or retirement needs.

They grow tax-deferred.

They can be a safe place to store extra money that is not needed until later.

They are intended for people who have short-term financial goals with an immediate need to use the money.

Correct

Incorrect

MENU

Home
Utah Exam Prep
Utah CE
Idaho Exam Prep
Idaho CE
Arizona Exam Prep
Our Story
FAQ
Privacy Policy

CONTACT US

Business Hours

9:00am to 7:00pm, Mountain Time

Monday thru Friday

Office Phone

(801) 518-1956

Text Us (anytime)

(801) 518-5016

Email Us

marlene@mountainCE.com

rjmauer@mountainCE.com

Follow us on:

© 2025 Mountain CE, All Rights Reserved