Life Insurance Taxation

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT

Being aged 65

In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

From trustee to trustee

When do full Social Security retirement benefits begin?

When the worker reaches age 65 and has earned the required amount of work credits.

Which of the following terms is used to name the nontaxed return of unused premiuns?

Dividend

What is the number of credits required for fully insured status for Social Security disability benefits?

40

Which concept is associated with "exclusion ratio"?

Annuity Payments

Which of the following is NOT true of Section 1035 Policy Exchanges?

Any exchange made under Section 1035 of the Internal Revenue Code must be completed within 30 days.

What is the official name for the social security program

Old-Age, Survivors, and Disability Insurance

Which of the following refers to the amount of retirement benefits a worker receives under Social Security based on the worker's earnings and retirement age?

PIA

An annuitant dies before the effective date of a purchased annuity. Assuming that the annuitant's wife is the beneficiary, what will occur?

The interest will continue to accumulate tax deferred.

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

What part of the Internal Revenue Code allows an owner of a life insurance policy or annuity to exchange or replace their current contract with another contract without creating adverse tax consequences?

Section 1035 Policy Exchange