WISCONSIN LIFE INSURANCE EXAM FINAL
SCRIPT COMPLETE QUESTIONS AND
CORRECT ANSWERS VERIFIED PASS
●● Entity Plans.
Answer: Agreements in which a business assumes the obligation of
purchasing a deceased owner's interest in the business, thereby
proportionately increasing the interests of surviving owners
●● Human Life Value Approach.
Answer: An individuals economic worth, measured by the sum of the
individuals future earnings that is devoted to the individuals family.
●● 403(b) Plan.
Answer: A tax-deferred retirement plan for certain employees of public
schools, employees of specific tax-exempt organizations, and certain
ministers. For example: teachers, hospital workers, ministers, and some
other public employees
●● 1035 Contract Exchange.
Answer: Applies to annuities. If an annuity is exchanged for another
annuity, a gain (for tax purposes) is not realized. This is also true for a
life insurance policy or an endowment contract exchanged for an
annuity. However, an annuity cannot be exchanged for a life insurance
,policy. This provision in the tax code allows you, as a policyholder, to
transfer funds from a life insurance, endowment or annuity to a new
policy, without having to pay taxes
●● Accumulation Period.
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax
deferred.
●● Accumulation Units.
Answer: A variable annuity contract owner's interest in the separate
account prior to annuitization.
●● Annuitant.
Answer: The person that buys an annuity; may or may not be an
annuity's policyowner. The annuitant's life expectancy determines the
annuity payments.
●● Annuity Units.
Answer: At the time the variable annuity benefits are to be paid out to
the annuitant, the accumulation units in the participant's individual
account are converted into annuity units.
●● Cash Refund Option.
,Answer: Provides that, upon the death of an annuitant before payments
totaling the purchase price have been made, the excess of the amount
paid by the purchaser over the total annuity payments received will be
paid in one sum to designated beneficiaries.
●● Deferred Annuity.
Answer: An annuity in which the rents begin after a specified number of
periods. May be purchased on either a single premium or flexible
premium basis. Typically do not begin making payments for at least 1
year after the date of purchase.
●● Equity Indexed Annuity.
Answer: A fixed, deferred annuity that allows the owner to participate in
the growth of the stock market and provides downside protection against
the loss of principal and prior interest earnings if the annuity is held to
term.
●● Exclusion Ratio.
Answer: Fraction used to determine amount of annual annuity income
exempt from federal income tax. Exclusion ratio is the total contribution
or investment in the annuity divided by the expected ratio.
●● Fixed Annuity.
Answer: An annuity that offers fixed payments and guarantees a
minimum rate of interest to be credited to the purchase payment or
payments.
, ●● Immediate Annuity.
Answer: Provides for payment of annuity benefit at one payment
interval from date of purchase. Can only be purchased with a single
payment.
●● Joint and Survivor Option.
Answer: A settlement option which guarantees that benefits will be
payed on a life-long basis to two or more people. This option may
include a period certain and the amount payable is based on the ages of
the beneficiaries. When the surviving annuitant dies, no further
payments are made to anyone. A full survivor option pays the same
benefit amount to the survivor. A two-thirds option pays two-thirds of
the original joint benefit. A one-half survivor option pays one-half of the
original joint benefit.
●● Life with Period Certain Annuity (Life Income with Term-Certain
Option).
Answer: Designed to pay the annuitant an income for life, but
guarantees a definite minimum period of payments. The life with period
certain option provides income to the annuitant for life but guarantees a
minimum period of payments. Thus, if the annuitant dies during the
specified period, benefit payments continue to the beneficiary for the
remainder of that period.
●● Market Value Adjusment.
SCRIPT COMPLETE QUESTIONS AND
CORRECT ANSWERS VERIFIED PASS
●● Entity Plans.
Answer: Agreements in which a business assumes the obligation of
purchasing a deceased owner's interest in the business, thereby
proportionately increasing the interests of surviving owners
●● Human Life Value Approach.
Answer: An individuals economic worth, measured by the sum of the
individuals future earnings that is devoted to the individuals family.
●● 403(b) Plan.
Answer: A tax-deferred retirement plan for certain employees of public
schools, employees of specific tax-exempt organizations, and certain
ministers. For example: teachers, hospital workers, ministers, and some
other public employees
●● 1035 Contract Exchange.
Answer: Applies to annuities. If an annuity is exchanged for another
annuity, a gain (for tax purposes) is not realized. This is also true for a
life insurance policy or an endowment contract exchanged for an
annuity. However, an annuity cannot be exchanged for a life insurance
,policy. This provision in the tax code allows you, as a policyholder, to
transfer funds from a life insurance, endowment or annuity to a new
policy, without having to pay taxes
●● Accumulation Period.
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax
deferred.
●● Accumulation Units.
Answer: A variable annuity contract owner's interest in the separate
account prior to annuitization.
●● Annuitant.
Answer: The person that buys an annuity; may or may not be an
annuity's policyowner. The annuitant's life expectancy determines the
annuity payments.
●● Annuity Units.
Answer: At the time the variable annuity benefits are to be paid out to
the annuitant, the accumulation units in the participant's individual
account are converted into annuity units.
●● Cash Refund Option.
,Answer: Provides that, upon the death of an annuitant before payments
totaling the purchase price have been made, the excess of the amount
paid by the purchaser over the total annuity payments received will be
paid in one sum to designated beneficiaries.
●● Deferred Annuity.
Answer: An annuity in which the rents begin after a specified number of
periods. May be purchased on either a single premium or flexible
premium basis. Typically do not begin making payments for at least 1
year after the date of purchase.
●● Equity Indexed Annuity.
Answer: A fixed, deferred annuity that allows the owner to participate in
the growth of the stock market and provides downside protection against
the loss of principal and prior interest earnings if the annuity is held to
term.
●● Exclusion Ratio.
Answer: Fraction used to determine amount of annual annuity income
exempt from federal income tax. Exclusion ratio is the total contribution
or investment in the annuity divided by the expected ratio.
●● Fixed Annuity.
Answer: An annuity that offers fixed payments and guarantees a
minimum rate of interest to be credited to the purchase payment or
payments.
, ●● Immediate Annuity.
Answer: Provides for payment of annuity benefit at one payment
interval from date of purchase. Can only be purchased with a single
payment.
●● Joint and Survivor Option.
Answer: A settlement option which guarantees that benefits will be
payed on a life-long basis to two or more people. This option may
include a period certain and the amount payable is based on the ages of
the beneficiaries. When the surviving annuitant dies, no further
payments are made to anyone. A full survivor option pays the same
benefit amount to the survivor. A two-thirds option pays two-thirds of
the original joint benefit. A one-half survivor option pays one-half of the
original joint benefit.
●● Life with Period Certain Annuity (Life Income with Term-Certain
Option).
Answer: Designed to pay the annuitant an income for life, but
guarantees a definite minimum period of payments. The life with period
certain option provides income to the annuitant for life but guarantees a
minimum period of payments. Thus, if the annuitant dies during the
specified period, benefit payments continue to the beneficiary for the
remainder of that period.
●● Market Value Adjusment.
