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11 Cards in this Set
- Front
- Back
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Who owns a group life contract? What does the insured receive? Who are the parties to the contract? |
The sponsor or owner of the contract owns the contract. The insured receives a Certificate of Insurance. |
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What are some of the group characteristics important for underwriting? |
They are not looking at the health of the group. They are looking at the purpose of the group, the size of the group, turnover of the group, and financial strength of the group. |
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Who can contribute to a traditional IRA? |
Individuals up to age 70 1/2, up to 100% of their earned salary if less than the maximum allowed amount |
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What are the main differences between a traditional IRA and a Roth IRA? |
Ira is before taxes, Roth IRA is after-tax contributions. |
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What are the consequences of withdrawing money from a traditional IRA prior to age 59 1/2? |
10% penalty for early withdrawal and it will be taxed. |
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Who is eligible for a Keogh HR 10 plan? |
A self-employed person. Pre taxed. |
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What is the purpose of key person insurance? What if key employee quits? |
The insurance protects business from Financial loss because of premature death. |
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How are life insurance death proceeds taxed? |
They are free of federal income taxation if taken in a lump sum. Interest is taxable. |
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How are dividends taxed in participating policies? |
Dividends are not taxable, interest is. |
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When does a life insurance policy become a Modified Endowment Contract? MEC |
Anytime a life insurance policy fails a 7-pay test. |
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In regards to Social Security what does the term fully-insured mean? |
Paid for 40 quarters. |
