Retirement and Other Insurance Concepts

Policy loans

Can be repaid at any time, including surrender and death

The owner

In a life settlement contract, whom does the life settlement broker represent?

To create an estate

What is the best reason to purchase life insurance rather than an annuity?

100%

What percent of a company's employees must take part in a noncontributory group life plan?

A policyowner who is not the insured

Who is a third-party owner?

The amount of the distribution is reduced by the amount of a 20% withholding tax

A 60 year old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days.

Keogh Plan

A person must have worked at least 1,000 hours per year to be eligible for a

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan

An employee has a group life insurance through her employer. After 5b years, she decides to leave the company and work independently. How can she obtain an individual policy?

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

A portion of the benefit up to a limit is tax free; the rest is taxable income

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits ride.

Are subject to vesting requirements

Employer contributions made to a qualified plan

The cash value available to the Policyowner

Example of liquidity in a life insurance contract

Employees

For a retire ent plan to be qualified, it must be designed for the benefit of

$3,000

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

It is approved by the IRS

If a retirement plan or annuity is "qualified" this means

Grow tax deferred

In life insurance policies, cash value increases

Liquidity

In life insurance refers to availability of cash to the insured.

Generally not taxed as income

Life insurance death proceeds are

Any form of life insurance

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement?

6 credits

The minimum number of credits required for partially insured status for Social Security disability benefits

Dividend

The return of unused premiums

The earnings in a qualified plan accurate tax deferred

The tax advantage of of a qualified retirement plan

Premiums are not tax-deductible as a business expense

The taxation of premiums in a key person life insurance policy

Have attained fully insured status

This is an eligibility for all Social Security Disability Income benefit

Premiums are determined by the age, sex and occupation of each individual certificate holder

This is not a characteristic of group life insurance

They are tax free to terminally ill insured

This is true regarding taxation of accelerated benefits under a life insurance policy

Life expectancy

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

Taxation on accumulation

This would be different between qualified and non qualified retirement plans

Owner's income

Traditional IRA contributions are tax deductible based on

75 %

Under a contributory group plan, an insurer will require what percent of eligible employees be included in the plan?

Cash values can be borrowed at any time

What does "liquidity" refer to in a life insurance policy?

Personal Use of Life Insurance

survivor protection, estate creation and conservation, cash accumulation, and liquidity