Benefits Exam 1

core benefits

-comprehensive medical benefits -dental -Short term disability -Basic life insurance -pension plans

Optional Benefits

-health care reimbursement -long term disability -Vision

Mandatory Benefits

-social security -worker's compensation - unemployment insurance -FMLA -Basic medical coverage

ADEA number of employees

20 or more

ADEA age

40 or older

The total FICA Percentage paid by employers is: A. 7.65% B. 6.2% C. 1.45% D. 15.3%

A. 7.65%

All of the following statements concerning the financing of unemployment insurance benefits are correct EXCEPT: A. most state programs are financed primarily by payroll taxes paid by employees. B. the tax rate for a given employer may be reduced if the employer has a stable employment record. C. contributions from a state program are deposited into the state's account in a federal trust fund from which benefits are paid. D. federal funds are available to states to provide additional benefits during times of high unemployment.

A. most state programs are financed primarily by payroll taxes paid by employees

Which of the following is NOT CORRECT concerning retirement benefits through Social Security? A. Full benefits begin at age 67 if born after 1/1/60 B. Reduced benefits beginning at age 60 C. Receive increased benefits if retire beyond full retirement age D. Benefits intended to provide "floor of protection"

B. Reduced benefits beginning at age 60

In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to Social Security disability benefits for 24 calendar months. II. Dependents of fully or currently insured workers who require renal dialysis or kidney transplants.

Both

Issues that must be addressed when outsourcing benefit administration include which of the following? I. Confidentiality of data II. Vendor responsibility for system upgrades. A. I only B. II only C. Both I and II D. Neither I nor II

Both

Reasons for the growth of group insurance include which of the following? I. The influence of organized labor II. Legislation that mandates benefits

Both

Which of the following statements concerning Medicare Advantage is (are) correct? I. It may eliminate the need for a beneficiary to purchase a Medicare supplement policy. II. In order to participate, a participant must continue to pay the Medicare Part B premium.

Both

Benefit objectives should be determined by which of the following: A. a firm's employees. B. a union(s) representing a firm's employees. C. a firm's board of directors or owners. D. the Federal government.

C. a firm's board of directors or owners

All of the following are distinguishing characteristics of social insurance programs EXCEPT: A. compulsory employment-related coverage B. benefits prescribed by law C. benefits based on needs D. emphasis on social adequacy E. partial or total employer financing

C. benefits based on needs

All of the following are typically included in a "narrow" definition of employee benefits EXCEPT: A. group life insurance. B. pension plans. C. educational expense allowances. D. short-term disability benefits.

C. educational expense allowances

Which of the following statements concerning provisions of group term life insurance contracts is correct? A. The usual grace period for the payment of premiums is 60 days. B. The amount of coverage for an employee would be reduced if the employee's age was misstated. C. Death claims are payable 60 days after death or when the insurance company receives proof of death, whichever is later. D. A valid assignment must usually be in writing and filed with the insurance company.

D. A valid assignment must usually be in writing and filed with the insurance company

Which of the following statements concerning the traditional form of accidental death and dismemberment coverage is correct? A. Death benefits are payable only if death occurs with 30 days following an accident. B. Death benefits are automatically paid to the employee's spouse if an employee is married. C. Dismemberment benefits are usually paid for occupational accidents only. D.Coverage usually ceases at retirement even if some or all of the basic group life insurance continues

D. Coverage usually ceases at retirement even if some or all of the basic group life insurance continues

All of the following are reasons for social insurance programs EXCEPT to: A. solve major social problems. B. provide a base of economic security. C. provide coverage for perils that are difficult to insure in the private sector. D. provide competition to the private insurance industry.

D. provide competition to the private insurance industry.

Narrow definition of employee benefits

Death Accident Sickness Retirement Unemployment

ADEA applies only to employers with 15 or more employees

False

Basic term life insurance allows for accumulation of cash values

False

Because employers get "wholesale" rates and better tax considerations on pension and insurance plans, contributory plans will soon be outmoded.

False

Dependent, unmarried children are only eligible for Social Security Survivor's benefits if and only if the employee was fully insured at the time of death.

False (currently too)

Under a position schedule, the amount of life insurance is usually determined as a multiple or percentage of each employee's earnings

False (earnings schedule)

Maximum HI withholding in 2021 was $132,900.

False (no limit)

Which of the following statements about determining the needs of employees, is (are) correct? I.Simplified questionnaires are ineffective if employees are given the opportunity to make general comments. II.Personnel interviews are most effective if conducted by an employee's supervisor.

None

Which categories of employee benefits have had the most rapid cost increase in recent years

Payments for private medical insurance, retirement, and savings plan

Legally required social insurance payments

Social Security, Medicare, Unemployment Insurance, Worker's Compensation, Temporary Disability Insurance

Unemployment Insurance

State

Workers Compensation

State

1% reductions can be made on a monthly basis in group term life insurance benefits for employees after they reach the age of 65

True

ERISA applies also to most traditional group insurance plans

True

ERISA applies to retirement and welfare benefit plans including medical expense, disability and death benefit plans.

True

One-fourth of benefit dollars go for Social Insurance.

True

Short-term disability income plans are subject to ERISA

True

Virtually every conceivable employee benefit qualifies as a "mandatory subject for bargaining."

True

With supplementary medical insurance in Medicare, there is a $203 annual deductible in 2021.

True

Based on U.S. Chamber of Commerce statistics, all of the following statements concerning the percentage of payroll spent by employers for employee benefits is correct EXCEPT: A. Almost two-thirds of this percentage is for medical expense benefits. B. The percentage for individual businesses varies significantly. C. Within specific industries, the percentage tends to be higher for firms with 100 or more employees than for firms with fewer than 100 employees. D. The percentage tends to be somewhat higher for hourly employees than for salaried employees.

A. Almost two-thirds of this percentage is for medical expense benefits.

Which of the following medical expenses is covered under Part B of Medicare? A. Diagnostic tests B. Custodial nursing care C. Hearing examinations and hearing aids D. Drugs that can be self-administered

A. Diagnostic tests

Worker's compensation fits into which of the five categories of employer benefits or costs? A. Legally required social insurance payments. B. Payments for private insurance and retirement plans. C. Payments for time not worked. D. Extra cash payments to employees. E. Extra cost payments to employees.

A. Legally required social insurance payments.

Retirement income is covered under which of the following letters of the Social Security acronym "OASDHI"? A. OA B. S C. D D. HI

A. OA

Which of the following is NOT CORRECT concerning disability benefits through Social Security? A. Payable only for 10 years or less B. To receive benefits employee must be covered for a minimum of 6 quarters (more for older workers) C. Benefits integrated with Worker's Compensation benefits; combined benefits cannot exceed 80% of earnings D.Only received benefits if disability is expected to last at least one year unless disability expected to end in death.

A. Payable only for 10 years or less

All of the following are traditional reasons for having different benefit plans for different groups of employees EXCEPT: A. To meet government regulations. B. To provide different benefits for salaried and union employees. C. To be competitive by providing different benefits in different geographic regions. D. To provide supplemental benefits to top management.

A. To meet government regulations

All the following dependents or former dependents of a covered worker are eligible for a benefit under the retirement portion of the OASDI program EXCEPT a: A. divorced spouse, age 65, who was married to the retired worker for 6 years. B. retired worker's spouse, age 63, who is no longer caring for children. C. retired worker's spouse, age 45, who is caring for a 12-year old daughter of the retired worker. D. Retired worker's unmarried son, age 25, who has been severely disabled since an automobile accident while in junior high school.

A. divorced spouse, age 65, who was married to the retired worker for 6 years

Which of the following is covered in the hospital portion of Medicare? A. hospice benefits B. private room coverage C. emergency services outside the United States and its territories or possessions. D. custodial care E. elective cosmetic surgery.

A. hospice benefits

What is the maximum amount of noncontributory dependent life (dependent child) insurance that can be provided to an employee without adverse federal income tax consequences (using 2021 numbers)? A. $1,000 B. $2,000 C. $2,500 D. $5,000

B. $2,000

Which of the following is a distinguishing characteristic of social insurance programs? A. Total employee financing B. Benefits prescribed by law C. Benefits based upon need D. Emphasis on individual equity

B. Benefits prescribed by law

Which of the following statements concerning the waiver-of-premium for group term life insurance is correct? A. The disability must commence prior to some specified age, such as 60. B. The disability must commence within 12 months after the employee ceases to be insured under the master contract. C. The employee must be totally disabled. D. The employee must submit evidence of continuing disability.

B. The disability must commence within 12 months after the employee ceases to be insured under the master contract

Which of the following statements concerning the financing of Social Security and Medicare is incorrect? A. Payroll taxes are deposited into trust funds from which benefits and administrative costs are paid. B. The tax rate for self-employed persons is one-half of the combined tax rate for employees and employers. C. The earnings base on which taxes are paid will increase based on changes in average wages in the national economy. D. A system of partial advance funding is used.

B. The tax rate for self-employed persons is one-half of the combined tax rate for employees and employers

All of the following statements concerning the usual provisions for continuing protection under group term life insurance contracts are correct EXCEPT: A. coverage continues for 31 days after termination of employment. B. an employee has up to 1 year after termination of employment to convert coverage. C. only a limited amount of coverage may be converted if a master contract is terminated. D. continuation of coverage under the waiver-of-premium provisions is contingent upon an employee's being totally disabled.

B. an employee has up to 1 year after termination of employment to convert coverage

Worker's compensation benefits are usually financed by: A. employee contributions. B. employer premiums. C. state tax revenue. D. federal tax revenue.

B. employer premiums

Unemployment insurance is likely to be granted for which of the following? A. resignation without cause B. layoff due to factory closing C. termination for performance deficiencies D. termination for excessive absenteeism

B. layoff due to factory closing

All the following statements concerning benefits under worker's compensation laws are correct EXCEPT: A. rehabilitation benefits are available to restore disabled workers to productive employment. B. medical benefits are usually subject to deductibles and coinsurance. C. burial benefits and cash income payments are available to eligible survivors if a worker is killed on the job. D. disability benefits are frequently paid retroactively to the date of injury if a worker is still disabled after satisfying a waiting period (if exceed a certain period of injury).

B. medical benefits are usually subject to deductibles and coinsurance

In addition to most persons over age 65, which of the following persons is (are) eligible for Medicare benefits? I. Persons under age 65 who have been entitled to OASDI disability benefits for 24 calendar months. II. Dependents of fully or currently insured workers who require renal dialysis or kidney transplants.

Both

All of the following statements concerning Part A of Medicare are correct EXCEPT: A. Inpatient hospital care is subject to an initial deductible for each period. B. Hospice benefits may be elected in lieu of inpatient hospital benefits. C. Inpatient hospital care is paid in full over the 60th day of hospitalization. D.Inpatient care in a skilled-nursing facility is available after a patient has been hospitalized for at least 3 days

C. Inpatient hospital care is paid in full over the 60th day of hospitalization.

Which of the following statements concerning unemployment insurance benefits is correct? A. Benefits are a flat amount regardless of a worker's wages. B. Because of federal legislation, the maximum benefit is the same in all states. C. Most states pay regular benefits for a maximum duration of 26 weeks. D. Extended benefits are paid by the federal government for up to 2 years after a worker's regular benefits, are exhausted.

C. Most states pay regular benefits for a maximum duration of 26 weeks

Which of the following is most likely to be a condition that will result in the payment of unemployment compensation benefits? A. Unemployment because of a labor dispute. B. Unemployment as a result of voluntarily leaving a job without good cause. C. Unemployment due to adverse economic conditions. D. Unemployment resulting from discharge due to misconduct.

C. Unemployment due to adverse economic conditions.

Which of the following is CORRECT concerning Medicare benefits provided through Social Security? A. Covers persons' age 60 and over and long-term (2-years) disabled. B. Part A - refers to Medical (non-contributory) C. Part B - refers to Hospital (non-contributory) D. In 2021, the contributory premium amount in Part B for most people was $148.50

D. In 2021, the contributory premium amount in Part B for most people was $148.50

Which of the following statements concerning disability benefits under OASDI is correct? A. There is a one-year waiting period before benefits are payable. B. Benefits are payable as long as the disabled worker is unable to perform his or her regular occupation. C. Benefits are payable only if the condition causing the disability is expected to result in death prior to age 65. D. In addition to the worker's disability benefit, benefits can be paid to eligible dependents.

D. In addition to the worker's disability benefit, benefits can be paid to eligible dependents.

All of the following have been traditional approaches for determining employee benefit needs EXCEPT: A. Doing what competitors are doing. B. Using employer perceptions to determine needs. C. Using benefits for salaried employees based on the benefits negotiated for union employees. D. Using cafeteria plans to let employees determine their own needs.

D. Using cafeteria plans to let employees determine their own needs

All the following statements about eligibility requirements for group insurance contracts are correct EXCEPT: A. eligibility is usually limited to full-time employees. B. if an employee fails to elect coverage under a contributory plan, evidence of insurability will be required for future eligibility. C. under an actively-at-work provision, coverage for an employee who is absent from work on the otherwise effective date of coverage will commence when the employee returns to work. D. it is the responsibility of the insurance company to determine the appropriate covered classification for each employee.

D. it is the responsibility of the insurance company to determine the appropriate covered classification for each employee

All of the following statements concerning benefit schedules for group term life insurance are correct EXCEPT: A. a flat-benefit schedule is often used when the amount of insurance is relatively small. B. under a pension schedule the amount of life insurance is a function of an employee's projected pension at retirement. C. benefits under an earnings schedule are usually determined by base salary only. D. position schedule eliminates the need to comply with nondiscrimination rules.

D. position schedule eliminates the need to comply with nondiscrimination rules

Which of the following is NOT CORRECT concerning survivor benefits through social security? A. Given to widows and widowers age 60 and over B. Given to dependent children to age 18 (19- if a full-time student) C. Given to dependent parents age 62 and over D. Given to widows and widowers (any age if caring for dependent children (under age 16)) E. Given to widows and widowers regardless if they remarry (as long as remarry before 60).

E. Given to widows and widowers regardless if they remarry (as long as remarry before 60).

Extra cash payments to employees

Educational expenses, moving expenses, suggestion awards, Christmas/holiday bonuses, current profit-sharing payments, savings plan, bonuses, and awards

Benefit plans subject to ERISA include plans to provide Workers= Compensation Benefits

False

Company retirement benefits for a surviving spouse end with remarriage.

False

ERISA also applies to plans under which the employer pays nothing, is not the policy owner, and merely collects premiums on behalf of employees

False

ERISA applies in part to overtime and holiday pay

False

ERISA covers government plans and workers compensation or employment laws

False

Employers can do very little to influence the provisions and payments of legally required benefits (e.g., Social Security, Unemployment Compensation, etc.)

False

Even if the employer does not provide any type of disability income or sick leave plan, the employer must provide coverage for pregnancy and its related medical coverage

False

Most survivor plans are well coordinated with employee needs

False

On an anual basis a reduction of 11% per year starting at age 65 and continuing through age 69 seems appropriate in group term life insurance and group disability income insurance

False

Once an employee benefit plan is established, it cannot be withdrawn or reduced.

False

PSA payments must begin with 6 months of the death of the covered spouse

False

Payment in most (SIBI) plans is not affected by remarriage.

False

Personal interviews to determine employee needs are a very effective technique even when used with a large number of employees.

False

Pregnancy benefits can be excluded for dependents other than spouse

False

Pregnancy benefits can be excluded for unmarried pregnant employees

False

Social Security Income is subject to FICA taxes

False

The EEOC allows blanket preexisting condition clauses that exclude from coverage the treatment of conditions which predate an individual's eligibility for benefits under a plan that includes disability-based conditions.

False

The age discrimination act in employment act allows medical expense benefits to be reduced for older employees only if the cost is justified

False

The age discrimination act provides specifc gudelines on the % amount long-term disability benefits can be reduced at age 65

False

The age discrimination in employment act required that benefits be continued for retired workers

False

The employer must provide pregnancy coverage for spouses of male employees if they cover female employees (assume that spouse is not part of company medical plan when answering this).

False

The most rapid increases in employee benefits in recent years have been in payments to social insurance programs and the cost of medical expense plans.

False

There is a higher probability of accidental death compared to death from sickness

False

When a company has different benefit plans, administrative costs are unaffected

False

Worker's Compensation is administered at the Federal rather than State level.

False

In 2021, a worker receives one quarter of coverage for each $10,000 of covered wages in a calendar year.

False ($1,470)

Social Security (OASDI) wage base was 137,000 in 2021

False ($142,800)

Unemployment wage base for Federal Unemployment insurance tax in 2021 was $9,000.

False ($7,000)

In the hospital insurance portion of Medicare, skilled nursing benefits up to 90 days of coverage is provided.

False (100 days, first 20 paid in full)

Pregnancy Discrimination Act/Civil Rights Act - Only applies to employers with 20 or more employees.

False (15)

Title I of the Americans with Disabilities Act only applies to employers with 25 or more employees

False (15)

Six workers now support each Social Security beneficiary.

False (2.8)

After deductible, you pay 25% of supplementary medical insurance

False (20%)

For people over age 65, short term disability benefits reductions can usually be justified by a 35% reduction for 65-69

False (20%)

To be disability insured, you need credit for 25 of the last 40 quarters ending with the quarter in which disability occurs. (When answering this question, assume person is 31 years old or older).

False (20/40)

In 2021, benefits were 39.2 % of wages and salaries.

False (30%)

Within 45 days, all or a portion of the term coverage can be converted to an individual policy (right to convert).

False (31 days)

A 75% reduction in group life insurance benefits can usually be justified at age 65

False (35%)

Benefit reductions in life insurance generally begin at age 65 with a 25% reduction

False (35%)

Up to 10 quarters of coverage can be earned in a single year.

False (4)

A qualified pre-retirement annuity (PSA) must be at least 75 percent of the participant's earned benefits

False (50%)

The cost of group term life insurance exceeding $100,000 must be included in an employee's taxable income to the extent the employee is contributing less than the value of the coverage established by IRC S.79

False (50,000)

OASDI percentage is 7.65%.

False (6.2%)

To be currently insured, you must be under 30 and have 8 out of 13 of the previous quarters.

False (6/13)

With Medicare, you pay an initial deductible and then Medicare pays the full cost of the remaining charges for the first 90 days per occurrence of illness

False (60 days)

In general, you can't get survivor's benefits from Social Security if you remarry, unless it occurs after age 65

False (60)

Long-term disability benefits can only be reduced at age 65

False (60-65)

For a spouse to receive disability benefits, he/she must be 65 or older (assume no children)

False (62)

According to the three tier model presented in class, basic term life insurance is normally considered a mandatory benefit.

False (Core benefit)

A parent age 62 or over, who was dependent on the deceased worker at the time of death, is only eligible for Social Security Survivor's Benefits if the deceased worker was currently insured.

False (Fully)

Retirement income is covered under the "S" of the Social Security acronym, "OASDHI."

False (OA)

One of the arguments against social insurance programs results from the ease of privately insuring catastrophic losses

False (Pro)

ERISA requires filling out 5500 Tax returns

False (and SAR)

Conversion clauses are attractive because of pricing advantages related to group rates

False (attractive because no medical exam required)

ADEA - Group benefits other than medical expense can be reduced for older employees only if cost justifies and only if done on a benefit-by-benefit basis

False (benefit-package basis too)

The ADEA applies only to non-contributory benefit plans

False (both)

Social Security has a more stringent definition of disability for persons who are blind and age 55 or over

False (less)

In most (SIBI) Survivor Income Benefit insurance plans, the spouses payments do not start before age 62

False (remarriage or death too)

Group Universal Life Plans (GULP's) are usually offered on an involuntary basis, with the employer paying the subsidies

False (voluntary)

Family and Medical Leave Act

Federal

Medicare

Federal

Social Security

Federal

Which of the following statements concerning a worker's primary insurance amount (PIA) under Social Security is (are) correct? I. It is the amount on which benefits for family members are based. II. It is limited to a maximum of $255

I

Which of the following statements concerning dependent life insurance is (are) correct? I. The employee is automatically the beneficiary II. The definition of dependent generally excludes stepchildren and adopted children.

I

Which of the following statements concerning employee benefit objectives is (are) correct? I. They usually establish guidelines rather than specific performance goals. II. They are usually developed for each type of benefit rather than for all overall benefit plan.

I

5.Which of the following statements concerning the use of a marketing-research approach for determining employee needs, is (are) correct? I. It is most commonly used for union employees only. II. It may have a negative effect on employee morale unless the employer is committed to using the results in its decision making

II

Which of the following statements concerning Medicare prescription drug coverage (Part D) is (are) correct? I. It is a mandatory plan for all Medicare beneficiaries. II. It is financed by the FICA taxes paid by active workers.

None

Which of the following statements concerning temporary disability laws is (are) correct? I. Benefits must be equal to 100 percent of an employee's average weekly wage for some period prior to disability. II. The entire cost of coverage must be borne by the employer.

None

Payments for private insurance and retirement plans

Old age, death, disability income, long-term care expenses, medical expenses, dental expenses, legal expenses, liability judgments

Extra cost payments to employees

Subsidized cafeterias, employee discounts, wellness programs, employee-assistance centers, daycare, adoption assistance, financial planning programs, retirement counseling, and free parking

A qualified J & S annuity is actuarially equivalent to a single annuity for a participants life

True

A specific provision in the ADEA permits reductions in group term life coverage for those who work past age sixty-five

True

A unique characteristic of group universal life plans is that a portion of the premium is invested at competitive rates.

True

Abortions can be excluded unless the life of the woman is endangered

True

Accidental Death Insurance (AD & D) is normally paid by the employer

True

Accidental death insurance is a standard component in group survivor packages, and it is normally paid for by the employer

True

According to ERISA, administrators must file an annual report with the IRS which includes detailed financial information about the plan and provides a summary of the annual report to each plan participant.

True

Age discrimination in employment act prohibits discrimination for workers age 40 or older

True

An employee's compensation tends to create his/her standard of living: benefits protect it.

True

As income increases, Social Security income replacement percentages decrease

True

Because term insurance is intended purely for protection and does not accumulate cash values for the covered person, it is relatively inexpensive

True

Benefit objectives may be very general and part of a firm's overall compensation objectives or may focus specifically on the types and levels of benefits to be provided

True

Benefit plans which require some sharing of expense between employer and employee (contributory plans) tend to provide broader coverage and gain better employee understanding of value

True

Effective tax rate for Federal Unemployment is .6%.

True

Group term life insurance is usually not reduced until age 65

True

HI percentage is 1.45%.

True

In Group Survivor Income Benefit Insurance (SIBI) payments are only made to the spouse or kids

True

In most Group Survivor Income Benefit Insurance (SIBI) payments, the spouse's benefit is payable until remarriage, death, or attainment of age sixty-two, whichever occurs first.

True

In terms of supplemental term life insurance, because an employed group is rated a better risk than the general population, premiums for this type of coverage are less than individual rates

True

It will take approximately 5 years for current retirees to receive benefits equal to their total contributions.

True

Lower paid employees who are in a modest tax bracket may have a preference for certain benefits even though they will result in some currently taxable incomes.

True

Medicare benefits are received tax-free.

True

Most benefits enjoy either a tax-exempt or tax-deferred status.

True

Normally, a disability must have lasted over 5 months and be expected to last over 12 months or last over 5 months and be expected to result in death before the 12 months to be defined as a disability by Social Security.

True

One problem with determining benefit needs by looking at the needs of a competitor's employees is that the make-up of the work force of the two firms may be different and the employees may have different needs.

True

Over 95 percent of workers are covered under Social Security, and over 98 percent under Medicare

True

Overtime and premium pay are forms of direct compensation and therefore generally are not classified as employee benefits (indirect compensation).

True

Part B of Medicare refers to supplementary medical insurance

True

Premiums for supplemental term life insurance are not as low as those for a non-contributory plan

True

Rates for supplemental term life insurance are cheaper than for the general population but not as low as non-contributory plans

True

Social Security permanently reduces benefits if you retire before your full retirement age.

True

Special provisions in the ADEA permits reductions in group term life insurance for those who work past age sixty-five

True

Tax rates in most states for Unemployment range from .1-8.1%.

True

Temporary disability benefits (up to 6 months) are subject to Federal Income tax except to the extent that the employee contributes to coverage.

True

The age discrimination in employment act says when participation in benefit plans, other than medical expense plans is voluntary to the company can require larger contributions instead of lowering benefits

True

The new Mental Health Parity Act, for the most part, makes it illegal to provide a lower level of benefits for mental and nervous conditions than for physical conditions.

True

There is no limit to the Medicare (HI) wage base

True

To be fully insured, you need only one-quarter for each year after you have attained age 21 and prior to the current year (assumes at least 6 quarters of coverage).

True

Under an accelerated benefit provision, an insured person is entitled to receive a portion of his or her death benefit while still living, if the person experiences a specified catastrophic illness, such as AIDS, a stroke or Alzheimer's disease

True

Virtually all group life insurance plans include a conversion clause which allows an employee the right to convert within thirty-one days all or a portion of the term coverage to an individual policy of permanent life insurance. No medical examination is required for this conversion.

True

When a worker is over 65 and retired Medicare is primary for medical expenses. If over 65 and working, the employer's plan is the primary payer of benefits.

True

With a Group Universal Life Plan (GULP), the covered individual can accumulate tax-deferred savings while maintaining a targeted amount of term insurance during active employment

True

Without proper objectives, it is difficult for an agent, broker, benefit consultant or third-party administrator to make recommendations about the benefit plan

True

Payments for time not work

Vacations, holidays, sick leave, jury duty, maternity/paternity leave, reserve/national guard leave, military leave, sabbatical leave