Chapter 4
The number of credits required to obtain a fully insured status to receive social security benefit is
40
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
Insured attained age
Which of the following is NOT a requirement of a qualified plan ?
It must be temporary
If a life policy does not pass the 7-pay test, that policy
Becomes a Modified Endowment Contract
Which of the following is NOT true regarding policy loans ?
Money borrowed from the cash value is taxable.
What is required for a number of employees in a simple plan ?
No more than 100
Generally, the premium paid for a personal life insurance is
Not tax deductible
The advantage of qualified plans to employers is
Tax-deductible contributions
Which of the following insurance arrangements will be appropriate for a business purchasing life insurance on its general manager
Third-party ownership
With personal life insurance, the lump-sum death benefit is received by the beneficiary
Income tax free
The 10% early withdrawal penalty from an IRA can be waived for
Catastrophic medical expenses
A key-person insurance policy benefit will pay for which of the following ?
Cost of training a replacement
I'm group life policies, individual certificates are given to
Each insured person
Which of the following is the eligibility requirements for setting up a traditional IRA plan ?
Earned income
Which of the following are Social Security benefits
Retirement, disability, and survivors