Choose all the correct options

Question

Your client bought a variable annuity contract that has a 5% contingent deferred sales charge with a 7-year surrender period four years ago.

Accepted Answer

both B and C.

Answer

that it’s a great idea, and you plan on how you’re going to spend the unexpected income.

Answer

that although the exchange doesn’t have any tax consequences, he’ll be looking at a new, longer, surrender period.

Answer

that he’ll have to pay the 5% deferred sales charge if he executes the exchange.

Your client bought a variable annuity contract that has a 5% contingent deferred sales charge with a 7-year surrender period four years ago. He has been reading about bonus annuities and 1035 exchanges and has asked for your advice. You can tell him: