OH-Life-Agent-Series-11-44 Exam Dumps : OHIO Life Insurance Agent Series 11-44

When an annuitant dies before the annuity's payout phase begins, the accumulated interest within the annuity is subject to income tax for the beneficiary. The beneficiary receives the premiums paid into the annuity tax-free, but any earnings or interest accrued are taxable as ordinary income. This taxation applies regardless of the beneficiary's relationship to the annuitant.

An immediate annuity is designed to start providing income payments shortly after a lump-sum premium is paid. Typically, these payments commence within 30 days to one year from the date of purchase, depending on the terms of the contract

In a viatical settlement, a policyholder sells their life insurance policy to a third party for a lump sum that is less than the policy’s death benefit but more than its cash surrender value. The buyer then becomes the policy’s beneficiary and receives the full death benefit upon the insured’s death.