Taxes, retirement, and other insurance concepts
Group Life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required in noncontributory plans
The minimum number of credits required required for partially insured status for Social Security disability benefits is
6 credits
All of the following are TRUE of the federal tax advantage of a qualified plan EXCEPT
At distribution, all amounts received by the employee are tax free
SIMPLE Plans require all of the following EXCEPT
At least 1,000 employees
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only
An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59 1/2
An employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?
Join during the open enrollment period
Which of the following is TRUE concerning whole life insurance?
Lump-sum death benefits are not taxable
All of the following statements are true regarding group insurance EXCEPT
Participants in the policy each receive a policy
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense
Which of the following is correct concerning the taxation of premiums is a key-person life insurance policy?
Premiums are not tax deductible as a business expense
Which type of retirement account does not require the owner to start taking distributions at age 72?
Roth IRA
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection
Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?
The employer is the owner and beneficiary
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
The policy is owned by the company
Under a SIMPLE plan, which of following is TRUE regarding taxation on both contributions and earnings?
They are tax deferred until withdraw
Which of the following is the best reason to purchase life insurance rather than annuities?
To create an estate
Which of the following statements regarding the taxation of Modified Endowment is FALSE?
Withdrawals are not taxable
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
100% participation of members is required is noncontributory plans
