missed questions CHAPTER 4 LIFE

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what is the number of credits required for fully insured status for social security disabilitiy benefits

40

which of the following is the required number of participants in a contributory group plan

75%

group life insurance is a single policy written to provide coverage to member of a group. which of the follow concrning group life is correct

100% participation of members is required in noncontributory plans

who is a third party owner

a policy owner who is not the insured

all of the following are true of the federal tax advantages of a qualified plan except

at distribution, all amounts received by the employee are tax free

an employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on

attained age

which of the following would describe a legal document which would dictate whol can buy a deceased partners share of a business and for what amoutn

buy-sell agreement

A key person insurance policy can pay for which of the following?

costs of training a replacment

if an insured worker has earned 40 quarters of coverage, the workers status under social security disability is

fully insured

which of the following is an eligibility requirement for all social security disability income benefits

have attained fully insured status

what is the main purpose of the seven-pay test

it determines if the insurance policy is a MEC

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

it is only taxable if the cash value exceeds the amount paid for premiums

which of the following is an IRS qualified retirement program for the self-employed

keogh plan

what is the official name for the social security program

old age survivors disability insurance

traditional IRA contributions are tax deductible based on which of the following

owners income

which of the following is correct concerning the taxation of premium in a key-person life insurance policy

premiums are not tax deductible as a business expense

An IRA purchased by a small employer to cover employees is known as a

simplified employee pension plan

which of the following would be considered a non qualified retirement plan

split-dollar plan

a producer is helping a married couple determine the financial needs to their children in the event one or both should die prematurely. this is a personal use of life insurance known as

survivor protection

the premiums paid by the employer in a nusiness life insurnace policy are

tax deductible by the employer

the advantage of qualified plans to employers is

tax-deductible contributions

all of the following would be different between qualified and nonqualified retirement plans except

taxation on accumulation

a corporation is the owner and benefificary of the key person life policy. if the corporation collects the policy benefit then

the benefit is received tax free

which of the following is an example of liquidity in a life insurance contract

the cash value

all of the following employees may use 403 (b) plan for their retirement except

the ceo of a private corporation

which of the following best describes the tax advantage of a qualified retirement plan

the earnings in a qualified plan accumulate tax deferred

which of the following is incorrect concerning noncontributory group plan

the employees receive individual policies

Who is the owner and who is the beneficiary on a Key Person Life Insurance Policy?

the employer is the owner and the beneficiary

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

the insurer will pay the full death benefit from the group policy to the beneficiary

all of the following are true of key person insurance EXCEPT

the plan is funded by permanent isnruance only

which of the following is true regarding taxation of accelerated benefits under a life insurance policy

they are tax free to terminally ill insured

which of the following employees insured under a group life plan would be allowed to convert to individual insurance coverage once the plan is terminated

those who have been insured under the plan for at least 5 years

which of the following is the best reason to purchase life insurance rather than an annuity

to create an estate

which of the following statements regarding the taxation of Modified endowment contracts is false

withdrawals are not taxable

which of the following is not an example of a business use of life insurance

workers compensation


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