Insurance: Taxes, Retirement and Other Insurance Concepts

Which of the following applicants would NOT qualify for a Keogh Plan (b)

a. Someone who works for a self-employed individual b. Someone who works for 400 (1000) hours a year c. Someone who had been employed for more than 12 months d. Someone who is over 25 years of age

For a retirement plan to be qualified, it must be designed for the benefit of (d)

a. Key employee b. Employed c. IRS d. Employees

Which of the following types of insurance policies would perform the function of cash accumulation (c)

a. Credit Life b. Increased Term c. Whole Life d. Term Life

When an employed offer to give an employee a wage increase in the amount of the premium on a new life insurance policy is called (a)

a. Executive Bonus b. Key Person c. A Fraternal Association d. Aleatory Contract

Under a SIMPLE plan, which of the following is true regarding taxation on both contributions and earnings (d)

a. Taxes must be paid in full b. Employer's matching contribution can be 50% of employee's salary c. 75% of employee's contributions are taxed d. They are taxes deferred until withdrawn

The following are legitimate to use of life insurance in a business settling EXCEPT (b)

a. Funding the business continuing agreements b. Funding against general company financial loss c. Compensation executives d. Funding against financial loss caused by the death of a key employee

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT (c)

a. The employer pays a bonus to a selected employee to fund the policy. b. It is considered a nonqualified employee benefit. c. The Policy is owned by the company d. Any type of insurance policy may be used.