I just uploaded seven Series 7 recorded classes that you can purchase "on demand" at www.passthe7.com/classes.htm. There are three lessons on options, two that break down 20 practice questions step by step, one on trading securities, and one on retirement and annuities. The following practice question is on variable annuities and is exactly the sort of thing that pops up on the Series 7 exam.
So, please enjoy:
An annuitant chooses life with a 10-year period certain. If the annuitant lives 12 years, what happens?
A. the beneficiary receives two years of payments
B. the annuity pays out for just 10 years
C. the annuity pays out for 12 years
D. annuity units are converted back to accumulation units
EXPLANTION: with a 10-year "period certain" the annuity company will pay for at least 10 years but will also pay as long as the annuitant lives. Whichever turns out to be longer--that's how long they end up paying, either to the annuitant or the beneficiary after the annuitant dies.