Quiz: the income play

Not quite. The base is a bookkeeping number for working out income. It is not interest, cash or a death benefit.

Right. The bonus sits on the income base, not in the account. The client cannot withdraw it or spend it.

Not quite. This bonus was added to the income base, not to the account. An income-base bonus is not spendable cash.

Not quite. Heatmap is marked New, and here the illustration agrees with it. But you quote a number only after you check it against the illustration.

Right. Genius Illustration shows $14,573 a year at 68, which is $1,214 a month. Confirm the first-payment year in the illustration.

Not quite. A lower number is still a guess. Quote only the income that the illustration confirms for the year it starts.

Right. If allowed withdrawals and fees empty the account, the rider income continues under its rules. That is why you show this case. It rests on the insurer's ability to pay.

Not quite. A lifetime income rider is built to keep paying after the account runs out through allowed withdrawals and fees.

Not quite. Heirs generally get the remaining death benefit or account value, not the income base. With an empty account, the ordinary death benefit is usually zero.

Not quite. The calculator is a quick comparison. The issued contract controls, and the carrier illustration shows the first-payment year.

Right. Genius Illustration shows $14,573 at 68 and $15,810 at 69. The carrier illustration settles the first-payment year. The issued contract controls.

Not quite. A one-year gap in labels is no reason to drop a row. Check the illustration and quote the right year.

Not quite. That describes an income rider. Many income annuities leave little or no cash value to draw on.

Not quite. That is not a standard right. The owner usually cannot recover the premium once payments start.

Right. A SPIA turns a lump sum into payments. The owner usually cannot recover the premium or change the payout.