Quiz: the legacy play

Not quite. That is the dollar-for-dollar rule. Some contracts use it, others reduce in proportion. Check which one this contract uses.

Right. That is the proportional rule. The death benefit fell $15,000 for a $10,000 withdrawal. Check which rule the contract uses.

Not quite. Not so. Withdrawals can shrink the death benefit, sometimes by more than the amount taken out.

Not quite. Not so. Unlike life insurance proceeds, annuity gains paid to a beneficiary are generally taxable income.

Right. Explain the general rule, then send the client to a tax advisor. Do not promise a tax result.

Not quite. The way it is paid out can change when tax falls due. The gains are still generally taxable income.

Not quite. An income doubler is not long-term care insurance. It changes the income, not a care bill.

Not quite. A doubler pays more only if the client meets the care test. Otherwise the client keeps the normal income.

Right. That is what the rider does. Name the test, the waiting period and the proof, and say it is not care insurance.