chapter 4 quiz: taxes, retirement plans, and Social Security
which of the following proves an employee's participation in a group life policy?
a certificate of coverage
Pete was covered under a group life insurance policy for $100,000. He was laid off on October one after seeing how much he'd have to pay to keep his health insurance benefits through COBRA he suffered a heart attack and died on October 11th. How much, if any, with his family receive from his group life policy?
$100, 000
a tax-free exchange of one annuity or life contract for another is called a
1035 Exchange
after what age, must withdrawals be made from IRS tax qualified retirement plans to avoid paying a 10% penalty?
59 1/2
the contributory group life policy must cover what percent of eligible employees?
75
which of the following statements about coverage during the conversion. Of a group life insurance policy is true?
coverage is available for 31 days
premiums paid by employers on Key-Employee life insurance policies
are usually not tax-deductible
which of the following describes an agreement between two business partners to sell their share of the business in the event of their death?
buy-sell agreement
in which of the following would insurance premiums be tax deductible?
employers pay non-contributory group life premiums
which of the following policies would be used to cover a person who is financing a new car purchase with a bank and wants their car loan paid off in the event of their death?
group credit life
which of the following describes an employer pay life insurance policy?
non-contributory group life
generally, life insurance policy death benefits are
not taxable
all of the following are examples of third party ownership except
ordinary life
the amount equal to the workers full retirement benefits after normal retirement age is called...
primary Insurance amount
which of the following describes a retirement plan?
qualified plan
Social Security retirement benefits are determined by all of the following except
sex
which of the following is non-qualified plan?
split dollar life
which of the following retirement plans would allow a person the highest contribution amount per year?
tax-deferred annuity
with regards to Social Security benefits, the person is considered fully insured if...
they have 40 quarters of coverage
the primary purpose of Key-Employee life insurance is
to indemnify a business for financial losses caused by the death of a valuable employee
