Life & Health Insurance — Annuities & Retirement Plans flashcards
10 of 64 cards free to study here · 2 topics · the whole deck is built into Willys
Annuity parties, phases and types, payout options, surrender charges and taxation, best-interest suitability, IRAs and Roth IRAs, 401(k), 403(b), 457, SEP, SIMPLE and Keogh plans, ERISA, rollovers, RMDs under SECURE 2.0 and Social Security basics.
Learn deck · part of Life and health insurance producer licence (national portion) · written against: Life, accident and health concepts common to state producer exams; NAIC model provisions; federal law as of 2026; state law excluded. Updated 2026-10-10.
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In an annuity, what roles do the owner, the annuitant and the beneficiary play?The owner buys the contract and holds its rights; the annuitant is the person whose life the income payments are based on; the beneficiary receives any death benefit.Annuities › Structure & Types
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How does the purpose of an annuity differ from that of life insurance?Life insurance protects against dying too soon; an annuity protects against living too long, by turning a sum of money into income that can last for life.Annuities › Structure & Types
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What are the two phases of a deferred annuity?The accumulation phase, when money goes in and grows tax-deferred, and the annuitization (payout) phase, when it comes out as income.Annuities › Structure & Types
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A 66-year-old retiree pays one premium and wants income to start next month. Which annuity fits?A single-premium immediate annuity (SPIA), which starts paying within one year of purchase.Annuities › Structure & Types
Watch out: a deferred annuity delays payments to a later date and builds value first. -
A 35-year-old wants to add money to an annuity whenever she can over the next 30 years. Which type fits?A flexible-premium deferred annuity, which accepts varying contributions during accumulation.Annuities › Structure & Types
Watch out: an immediate annuity can only be bought with a single premium. -
How does a qualified retirement plan differ from a non-qualified plan?A qualified plan meets IRS rules, so the employer deducts contributions when made and earnings grow tax-deferred, but it may not discriminate in favor of highly paid employees; a non-qualified plan may favor selected executives but gives no current employer deduction.Retirement Plans › Employer Plans
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Who may deduct traditional IRA contributions in full regardless of income?Anyone with earned income who is not an active participant in an employer retirement plan, and whose spouse is not one either.Retirement Plans › IRAs
Watch out: active participants lose the deduction over income ranges that are indexed yearly. -
A retiree living on a pension and investment income wants to fund an IRA. Can she contribute?No, unless she has earned income (compensation) or files a joint return with a spouse who does; pensions and investment income do not count.Retirement Plans › IRAs
Watch out: the SECURE Act of 2019 removed the old age limit on traditional IRA contributions. -
A spouse has no earnings of her own. Can an IRA still be funded for her?Yes: a spousal IRA lets a married couple filing jointly contribute for the non-working spouse based on the working spouse's earnings.Retirement Plans › IRAs
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How are Roth IRA contributions and qualified distributions taxed?Contributions are made with after-tax money and are never deductible; qualified distributions are tax-free, earnings included.Retirement Plans › IRAs
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About these cards
Review status: Second-reader reviewed, with corrections applied.
Checked against:
- Checked against the NAIC Suitability in Annuity Transactions Model Regulation (2020 best-interest revision), as commonly adopted; state versions vary.
- Federal items checked against the Internal Revenue Code (sections 72, 401, 403, 408, 408A, 411, 457 and the SECURE 2.0 Act of 2022), IRS retirement-plan publications and final RMD regulations (July 2024), ERISA and Social Security Administration publications; public domain U.S. government sources. No contribution limits or other yearly-indexed figures are given.
- General insurance principles written from author knowledge; no textbook, prep-course or question-bank text copied. National content only: state insurance law, fees and figures indexed yearly are excluded.
These are independent study notes written for Willys. They are not official exam material, may contain mistakes, and are no substitute for your course, your teacher or the exam owner's own publications. Found an error? Tell us — corrections ship as a new version of the deck.
Not insurance or legal advice. These cards cover the national portion of the producer licensing exam only. State insurance law and your state's exam content are not included; check your state's insurance department and its candidate handbook.
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