1) Brad funded a straight life deferred annuity by paying $500,000 on his 50th birthday. Brad expected to receive monthly annuity payments starting at age 60, but Brad died at age 59 before any payments were made. Which of the following statements is true regarding Brad's annuity?

A) Brad's beneficiary is entitled to receive $500,000 upon Brad's death

B) Brad's beneficiary is entitled to receive $500,000, but will not receive payment until what would have been Brad's 60th birthday.

C) Brad's beneficiary will receive annuity payments until a total of $500,000 has been paid out

D) Brad's beneficiary is not entitled to any money.

2) Life insurance policy loans must be repaid within 3 years or the policy will lapse. <----------- ( True or False )

3) Annuity payments will be higher if the annuity is funded with life insurance cash value rather than outside funds. <------- ( True or False )