EXam Fx Taxes, Retirement, and other Insurance Concepts 5-13-19

Annually renewable term

What type of life insurance is most commonly used for group plans?

At distribution, all amounts received by the employee are tax free.

All of the following are TRUE of the federal tax advantages of a qualified plan Except A.) Employee and employer contributions are not counted as income to the employee for income tax purposes. B.) At distribution, all amounts received by the employee are tax free. C.) Employer contributions are tax deductible as ordinary business expenses. D.) funds accumulate on a tax-deferred basis.

$3,000

If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually?

Master Contract

In a single employer group plan, what is the name of the policy issued to the employer?

Viator

What is the name of the insured who enters into a viatical settlement?

Welfare benefits

All of the following benefits are available under social security Except

40

What is the number of credits required for fully insured status for social security disability benefits?

executive bonus

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a. aleatory contract b. executive bonus c. key person d. a fraternal association

Someone who works for 400 hours a year

Which of the following applicants would NOT qualify for a Keogh Plan?

Life expectancy

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

self employed plumber

Who may contribute to an HR-10 plan?

It has a tax benefit for both employer and employee.

which of the following is True of a qualified plan? A.) It may discriminate in favor of highly paid employees. B.) It may allow unlimited contributions c.) It has a tax benefit for both employer and employee. D.) It does not need to have a vesting schedule

Attained age

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Settlement Option

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

From trustee to trustee

In a direct rollover, how is the money transferred from one plan to the new one?