Finance Quiz

What is the purpose of life insurance?

• Generate steady income stream

• Protect against market risk

• Provide guaranteed income

• Provide financial protection for beneficiaries in case of the insured's death

Which type of annuity credits interest based on a minimum guaranteed rate and additional returns based on the performance of a market index?

• Variable annuity

• Indexed annuity

• Immediate annuity

• Fixed annuity

What is the main advantage of annuities in terms of taxation?

• Tax-deductible premiums

• Tax-free withdrawals

• Taxable income

• Tax-deferred growth

Which of the following is a disadvantage of annuities related to potential financial loss?

• Steady income stream

• Guaranteed income

• Interest rate risk

• Asset protection

What is the primary purpose of retirement planning?

• To prepare for a longer life

• To maintain your standard of living

• To leave behind a legacy

• To fight inflation

Which type of retirement account is NOT connected to your job or employer?

• Personal Equity and Retirement Account (PERA)

• PAG-IBIG Fund

• Government Service Insurance System (GSIS)

• Social Security System (SSS)

What is the main advantage of life insurance over annuities?

• Death benefit

• Steady income stream

• Lifetime payout option

• Guaranteed income

What is the primary disadvantage of annuities related to fees and expenses?

• Interest rate risk

• Steady income stream

• Guaranteed income

• Complexity

Which type of insurance provides protection against property damage and physical injury caused to other people in an accident?

• Auto insurance

• Health insurance

• Life insurance

• Home insurance

What is the main advantage of life insurance in terms of financial protection?

• Death benefit

• Tax-deferred growth

• Guaranteed income

• Steady income stream