Which of the Following Is a Charge You Will Pay

question 48

Multiple Choice

Which of the following is a charge you will pay when you purchase a variable annuity?

• A) Surrender charge.
• B) Mortality and expense risk charge.
• C) Administrative fee.
• D) Fund expense.
• E) All of these.

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Definitions:

Group-Term Life Insurance

A type of life insurance where coverage is provided to a group of people by an employer or association, often at a lower cost than individual policies.

Taxable

Refers to income or transactions that are subject to tax by federal, state, or local taxing authorities.

Premiums

Payments made periodically to an insurance company by policyholders for coverage or to maintain a policy.

Income Recognition

The accounting principle that income should be reported in the fiscal period it is earned, regardless of when it is received.