NW Annuities Exam 2023 with complete solution
The ------ is offered on Northwestern Mutual immediate annuities and income
plans of a deferred annuity. The -------- is also, but neither is offered on the Single
Premium Deferred Income Annuity.
(B). Increasing Payment Option/Accelerated Income Withdrawal Feature
C. Single premium/Flexible premium
A. Accelerated Income Withdrawal Feature/Accelerated Death Feature.
A. Increasing Payment Option/Accelerated Death Benefit Feature.
Prior to recommending the purchase or exchange of a deferred annuity, a
financial representative should make reasonable effort to obtain, at a minimum,
information concerning the customer's:
-age
-investment experience, investment objectives, and risk tolerance
-intended use of the deferred annuity, including the investment time horizon and
liquidity needs.
-financial situation, including annual income, tax status, liquid net worth, and
existing assets (including investments and life insurance holdings).
-(True)
-False
Northwestern Mutual's Select Fixed Annuities offers three contract choices that
offer unique features. Which one of the following is NOT one of the three contract
choices?
A. Platinum
(B.) Bronze
C. Silver
D. Gold
Cindy is preparing for a closing meeting with clients who are considering a
deferred fixed annuity. This solution could help them meet their financial goal of
supplementing their future retirement income need with an income plan from the
deferred annuity. The clients are concerned about liquidity when they elect an
income plan from the deferred fixed annuity. What features of the deferred fixed
annuity should Cindy discuss that may address the clients concerns?
A. Accelerated Death Benefit Feature.
B. Increasing Payment Option.
C. Accelerated Income Withdrawal Feature.
D. Increasing Rate Feature
E. A, B and C
(F). B and C
Sam is meeting with a husband and wife who like the idea of having fixed and
guaranteed income backed by Northwestern Mutual. What they are not sure about
yet, is when they want to retire. They love what they doing professionally so it
could be a year from now or ten years from now. At the next meeting, they would
like to review some of the annuity income options they have with Northwestern
Mutual. Although there are several more details to discuss, what are some
product highlights you want to discuss?
, I. The income may begin from a Single Premium Deferred Income Annuity within
one week after purchase.
II. The Single Premium Immediate Annuity offers the Accelerated Income
Withdrawal Feature.
III. Income payments from the Single Premium Deferred Income Annuity may be
delayed up to ten years after contracts issue.
IV. A fixed income plan may be elected from a Northwestern Mutual deferred fixed
or variable annuity
A. I only
B. IV only
(C). II and III
D. III and IV
Evan phoned his rep. when he received his most recent statement on his deferred
annuity. Evan is 65 and purchased the fixed annuity seven years ago to be a
conservative part of his portfolio. Evan has read and heard a lot about how the
market is beginning to take off and that variable annuities have considerable
growth potential. He wants to get out of the fixed annuity and purchase a variable
annuity to earn a higher return. The rep. should:
A. Recommend that Evan consider an exchange into a variable life insurance policy
because it had growth potential with a death benefit.
B. Recommend that Evan surrender the annuity and invest in bond mutual funds
because they work similar and cost less.
C.Review Evan's investor profile factors and other facts to determine a suitable course
of action to address his concerns and needs.
(D). Update his investor profile factors and risk tolerance, and discuss with Evan the
long term focus of a variable annuity and how it will outperform the fixed annuity within
the first couple of years.
Not Sure!
William Purchased a deferred annuity several years ago. Alex, his representative,
helped him choose a Northwestern Mutual fixed annuity that matched his time
horizon and needs. Now, William, age 75, needs income and is requesting that
Alex provide options with his deferred annuity. During a brief conversation, Alex
did learn from William that he is nervous about outliving his retirement assets.
Which one of the following is a possible and logical option from Alex to discuss
with William?
A. Recommend that William move the funds from the deferred annuity into a 5 year CD
because William is conservative.
The ------ is offered on Northwestern Mutual immediate annuities and income
plans of a deferred annuity. The -------- is also, but neither is offered on the Single
Premium Deferred Income Annuity.
(B). Increasing Payment Option/Accelerated Income Withdrawal Feature
C. Single premium/Flexible premium
A. Accelerated Income Withdrawal Feature/Accelerated Death Feature.
A. Increasing Payment Option/Accelerated Death Benefit Feature.
Prior to recommending the purchase or exchange of a deferred annuity, a
financial representative should make reasonable effort to obtain, at a minimum,
information concerning the customer's:
-age
-investment experience, investment objectives, and risk tolerance
-intended use of the deferred annuity, including the investment time horizon and
liquidity needs.
-financial situation, including annual income, tax status, liquid net worth, and
existing assets (including investments and life insurance holdings).
-(True)
-False
Northwestern Mutual's Select Fixed Annuities offers three contract choices that
offer unique features. Which one of the following is NOT one of the three contract
choices?
A. Platinum
(B.) Bronze
C. Silver
D. Gold
Cindy is preparing for a closing meeting with clients who are considering a
deferred fixed annuity. This solution could help them meet their financial goal of
supplementing their future retirement income need with an income plan from the
deferred annuity. The clients are concerned about liquidity when they elect an
income plan from the deferred fixed annuity. What features of the deferred fixed
annuity should Cindy discuss that may address the clients concerns?
A. Accelerated Death Benefit Feature.
B. Increasing Payment Option.
C. Accelerated Income Withdrawal Feature.
D. Increasing Rate Feature
E. A, B and C
(F). B and C
Sam is meeting with a husband and wife who like the idea of having fixed and
guaranteed income backed by Northwestern Mutual. What they are not sure about
yet, is when they want to retire. They love what they doing professionally so it
could be a year from now or ten years from now. At the next meeting, they would
like to review some of the annuity income options they have with Northwestern
Mutual. Although there are several more details to discuss, what are some
product highlights you want to discuss?
, I. The income may begin from a Single Premium Deferred Income Annuity within
one week after purchase.
II. The Single Premium Immediate Annuity offers the Accelerated Income
Withdrawal Feature.
III. Income payments from the Single Premium Deferred Income Annuity may be
delayed up to ten years after contracts issue.
IV. A fixed income plan may be elected from a Northwestern Mutual deferred fixed
or variable annuity
A. I only
B. IV only
(C). II and III
D. III and IV
Evan phoned his rep. when he received his most recent statement on his deferred
annuity. Evan is 65 and purchased the fixed annuity seven years ago to be a
conservative part of his portfolio. Evan has read and heard a lot about how the
market is beginning to take off and that variable annuities have considerable
growth potential. He wants to get out of the fixed annuity and purchase a variable
annuity to earn a higher return. The rep. should:
A. Recommend that Evan consider an exchange into a variable life insurance policy
because it had growth potential with a death benefit.
B. Recommend that Evan surrender the annuity and invest in bond mutual funds
because they work similar and cost less.
C.Review Evan's investor profile factors and other facts to determine a suitable course
of action to address his concerns and needs.
(D). Update his investor profile factors and risk tolerance, and discuss with Evan the
long term focus of a variable annuity and how it will outperform the fixed annuity within
the first couple of years.
Not Sure!
William Purchased a deferred annuity several years ago. Alex, his representative,
helped him choose a Northwestern Mutual fixed annuity that matched his time
horizon and needs. Now, William, age 75, needs income and is requesting that
Alex provide options with his deferred annuity. During a brief conversation, Alex
did learn from William that he is nervous about outliving his retirement assets.
Which one of the following is a possible and logical option from Alex to discuss
with William?
A. Recommend that William move the funds from the deferred annuity into a 5 year CD
because William is conservative.
