Group Life & AnnuitiesQuestion 699 of 716
When determining the suitability of an annuity recommendation, a producer should consider the client's:
a.Marital status only
b.Favorite mutual fund only
c.Only the client's home zip code and the general cost of living in that particular geographic area
d.Age, income, financial objectives, liquidity needs, risk tolerance, and time horizon
Explanation
Suitability requires evaluating the client's full financial picture, age, income, goals, liquidity, risk tolerance, and time horizon, to ensure the annuity fits. A single factor is not enough.
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Related questions on this topic
- A surrender charge on a deferred annuity:
- Many deferred annuities include a free withdrawal provision allowing the owner to withdraw, without a surrender charge, up to:
- A withdrawal of taxable gain from a nonqualified annuity before age 59 1/2 is generally subject to:
- Recommending a deferred annuity with a long surrender period to an elderly client who needs access to funds soon is a suitability concern because:
- In a QUALIFIED annuity funded entirely with pre-tax dollars, distributions are:
- A nonqualified annuity is funded with after-tax dollars, so at payout:
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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)