Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
When is an estate created through life insurance?
|
The moment the first premium is paid.
|
|
What does it mean that an insurance policy can be used for estate conservation?
|
Life insurance proceeds may be used to pay inheritance taxes and federal estate taxes so that it is not necessary for the beneficiaries to sell out the assets
|
|
When determining the amount of insurance to buy, what does the human life value approach entail?
|
The insured gives an estimate of what would be lost to the family in the event of death. It calculates wages, inflation, the number of years to retirement, and the time value of money.
|
|
How do you determine lump sum needs?
|
Costs associated with death
Debt cancellation Emergency reserve funds Education funds Retirement fund Bequests |