Life Insurance

Front 1

DC employer advantages:
Safe harbor plan

Back 1

100% vesting
eliminate plan testing problems

Front 2

DC employer advantages:
REG 404c

Back 2

1)Provide education
2)Provide saf investment plus 4 other asset categories
3)Investment Policy statement Monitor investments at least annually

Front 3

DC employee advantages:

Back 3

1)catch up provison 50+
2)Distribution options
a. Lump sum
b. Distribution
c. annuitize
3)QDRO - option to split account if divorced (negotable)

Front 4

other employee sponsered plans

Back 4

1)Simple IRA
2)SEP-just for the employer

Front 5

Retirment planning

Back 5

1)Accumulation Phase
2)Distribution Phase

Front 6

Types of Retirement Savings

Back 6

1)Private Savings
2)Non-qualified employer sponsered plan
3)qualified employer sponsered plan

Front 7

Private savings

Back 7

After tax, taxable earnings

Front 8

Non-qualified employer sponsored plan

Back 8

-ability to discriminate:cant deduct
-Assets owned by company are subjected to backrupcy
-

Front 9

Qualified employer sponsored plan:ER establishes...

Back 9

1)tax deferal
2)Attract and retain employees
3)alturism for employees
4)union negotiated benefits

Front 10

Qualified employer sponsored plan:Types of plans...

Back 10

1)Defined Benefit:defines benefit guartees at retirment based on YOS, age, salary
2)Defined Contibution:defines contribution potenal without any gaurentees as the the benefit at retirment

Front 11

Qualified employer sponsored plan:: Common fetures of DB and DC: Governed by the ERISA Act

Back 11

1)eligibility rules
2)Funding
3)vesting:Ownership
4)Communication
5)Nondiscrimination
6)Beneficary must be named

Front 12

Qualified employer sponsored plan: Distribution Rules

Back 12

1)Fed/State Taxible
2)20% Fed withholding
3)10% early withdrawl penilty under 59 1/2
4)Rollover to other qualified plans

Front 13

Requirments of a valid contract

Back 13

1:agreement
2: Consideration
3:legal object
4:Competent parties
5:Legal form

Front 14

Requirments of a valid contract:
Agreement

Back 14

An offer and acceptence(accept, reject or conteroffer)

Front 15

Requirments of a valid contract:
Consideration

Back 15

1:statement in application
2:payment of premium

Front 16

The insurance contract is:

Back 16

1: a contract of adhesion:insuance company sets terms no negot.
2:a contract of good faith:dont hold back significant material. inconsistibility clause/2 years
3:Unilateral:promise is made by 1 party, the insurer
4:Personal:not subject to transfer
5:Aleatory:not an exchange of equal value

Front 17

Unique features of life insurance contracts:

Back 17

1: insurable interest
2:Actual cash value
3:valued policy:stated face value
4:Representations, not warranties:insured must provide correct info
5:common disaster clause
6:Suicide
7:Disappearence: 7 years(premiums must be paid though)
8:Murder by beneficiary

Front 18

Standard provisions..

Back 18

1:the grace period:31 days
2:Entire contract provisions
3:Misstatment of age
4:Reinstatement

Front 19

Non-Forfeiture values..

Back 19

1:Cash value
2:Reduce paid up insurance
3:Extended term insurance

Front 20

Settlement options...

Back 20

1:interest only
2:fixed period
3:life income
4:Fixed amount

Front 21

Special provisions...

Back 21

1:Suicide: 2 years
2: Aviation Exclusion
3:war exclusion
4: change of plan
5:waiver of premiums: if totally disabled:own occupation/any occupation
6:disability income

Front 22

nonindividual designation:
beneficary may be:

Back 22

Partnership
Aassociation
Corporation
Trustee

Front 23

reverter clause

Back 23

owner can name a new beneficary if they outlive them

Front 24

Assignment-to tranfer money

Back 24

1:irrevociable beneficiary--creditors have no claim
2:Bene is insured-creditors have claim
3:revocable bene-creditors have claim

Front 25

Assignment-kinds of...

Back 25

1:absolute assignment: totally transfers ownership
2:Collateral:assign only enough to cover the loan.

Front 26

3 foirfitures of life insurance..

Back 26

1:Loan or cash values
2:Paid-Up insurance
3: Extended term insurance to

Front 27

Policy Ownership

Back 27

1:Owner
2:Successor Owner
3:Change of owner

Front 28

Policy PRoceeds

Back 28

Proceeds: payable at death of the insured, unless suicide

Front 29

Dividends options:Dividends may be paid in cash or...

Back 29

1:Premium reduction option
2:dividend accumulation option
3:Paid up additions options

Front 30

Dividend after death

Back 30

the proceeds will include dividend from the year of insured's death

Front 31

automatic premium loan

Back 31

any premium not paid by the end of its grace period will be paid by charging the premium as a loan against the policy