Group Life & AnnuitiesQuestion 697 of 716
Many deferred annuities include a free withdrawal provision allowing the owner to withdraw, without a surrender charge, up to:
a.The entire 100% of the contract value at any time the owner wishes, without any charge
b.Nothing during the surrender period
c.A stated percentage, often 10%, of the value each year
d.Only the interest earned, not any of the principal
Explanation
A common free withdrawal provision lets the owner take out a set percentage, frequently 10% per year, without surrender charges. It is neither unlimited nor a total lockout.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- The exclusion ratio for an annuity payout is calculated as the:
- Once an annuitant has lived long enough to recover the entire cost basis through the exclusion ratio, subsequent payments are:
- A surrender charge on a deferred annuity:
- A withdrawal of taxable gain from a nonqualified annuity before age 59 1/2 is generally subject to:
- When determining the suitability of an annuity recommendation, a producer should consider the client's:
- Recommending a deferred annuity with a long surrender period to an elderly client who needs access to funds soon is a suitability concern because:
Last reviewed: · editorial process
PrepPass team · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)