SOFE Exam AFE Topic 2 Question 67 Discussion

Actual exam question for SOFE's AFE exam

Question #: 67
Topic #: 2

[All AFE Questions]

The magnitude of the variable annuity benefits provided by a deferred annuity depends on the size of the account value at the end of the accumulation phase.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: C

by Ma at Dec 27, 2023, 08:04 PM

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Katy

28 days ago

If the account value doesn't matter, maybe I should just throw all my money into a wood chipper. Same difference, right?

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Aleisha

13 days ago

A) True

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Teresita

1 months ago

Back in my day, we just stuffed cash under the mattress. None of this fancy 'annuity' nonsense.

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Adrianna

13 days ago

B) False

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Leah

19 days ago

A) True

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Bernardo

1 months ago

Well, if the account value doesn't matter, then what's the point of the whole 'accumulation phase' thing? A) True is the only logical answer.

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Jacklyn

3 days ago

False

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Benton

1 months ago

I agree, the account value at the end of the accumulation phase is crucial for determining the variable annuity benefits.

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King

1 months ago

True

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Rueben

2 months ago

Duh, it's A) True. The higher the account value, the bigger the annuity payouts. It's basic annuity 101.

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Haley

23 days ago

Nope, the statement is true. The account value is crucial for determining annuity payouts.

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Alexia

1 months ago

B) False

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Marguerita

1 months ago

Exactly, the account value directly impacts the annuity benefits.

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Odette

1 months ago

A) True

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Theodora

2 months ago

A) True. The larger the account value, the higher the benefits.

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Fannie

2 months ago

B) False. The benefits are not affected by the account value.

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Filiberto

2 months ago

A) True. The benefits are based on the account value.

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Chanel

2 months ago

I disagree with Tresa. The benefits are variable based on the account value, so I think the answer is A) True.

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Frederica

2 months ago

This is a no-brainer. The annuity benefits are directly tied to the account value, so B) False can't be correct.

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Junita

27 days ago

I agree, the benefits are indeed tied to the account value.

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Carisa

1 months ago

A) True

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Chaya

1 months ago

B) False

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Cherelle

1 months ago

I agree, the benefits are definitely tied to the account value.

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Nobuko

2 months ago

A) True

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Tresa

2 months ago

B) False. I think the benefits are predetermined regardless of the account value.

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Salome

2 months ago

Of course it's true! The whole point of a deferred annuity is to build up the account value during the accumulation phase.

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Glenn

21 days ago

That's correct, the benefits are based on the account value at the end of the accumulation phase.

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Kimberely

24 days ago

A) True

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Mila

1 months ago

Exactly, the larger the account value, the higher the benefits.

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Lillian

2 months ago

A) True

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Chanel

2 months ago

A) True. The benefits are indeed based on the account value.

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