PSI Life Exam Practice Test

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Prepare for the PSI Life Exam. Utilize flashcards and multiple-choice questions with detailed hints and explanations. Ensure success on your exam!

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Who can surrender an annuity during the accumulation period?

The policyowner
The beneficiary
The insurance company
The annuitant

The correct answer is: The policyowner

The policyowner is the individual who has the legal rights to make decisions regarding the annuity, including the ability to surrender it during the accumulation period. By definition, the policyowner is the person or entity who has purchased the annuity and is responsible for premium payments and other aspects of policy management. During the accumulation period, the policyowner may choose to surrender the annuity for various reasons, such as needing access to funds or changing financial goals. It's important to note that surrendering an annuity may entail specific consequences, such as surrender charges or tax implications. This choice reflects the fundamental principle of ownership, as the policyowner holds the authority to make binding decisions on the annuity contract. Other parties, such as beneficiaries, the insurance company, or the annuitant, do not possess the same rights regarding the surrender of the annuity during this phase.