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10 Cards in this Set

  • Front
  • Back
Generally, the premium paid for personal life insurance is
A. Fully tax deductible
B. Partially tax deductible
C. Not tax deductible
D. Taxed
Which of the following is NOT true regarding policy loans?
A. Money borrowed from the cash value is taxable
B. Policy loans can be repaid at death
C. An insurer can charge interest on outstanding policy laons
D. A policy loan may be repaid after the policy is surrendered
Which of the following is NOT a requirement of a qualified plan?
A. It must be temporary.
B. It must have a vesting schedule.
C. It cannot discriminate in favor of highly paid employees.
D. It must be written and communicated to all participants.
If a life policy does not pass the 7-pay test, that policy
A. Must be canceld
B. Becomes a Modified Endowment Contract
C. Is considered a Limited-Pay policy
D. Must increase its premiums for additional 7 years
The 10% early withdrawal penalty from an IRA can be waived for
A. Catastrophic medical expenses
B. Any type of disability
C. Withdrawal at age 55
D. A down payment under %10,000 on a second home
What qualifies an individual to contribute to an IRA?
A. Retirement income
B. Earned income
C. Investment income
D. Any income
All of the following persons who do not have an employer sponsered retirement plan would be eligible to set up contributions to a traditional IRA EXCEPT
A. Jason, age 26, an independent contractor
B. Arlene, age 72, a nurse
C. Marsha, age 40, a proofreader
D. Tom, age 60, a mechanic
What is the requirement for a number of employees in a SIMPLY plan?
A. 100 or more
B. No more than 100
C. 50 or fewer employees
D. At least 50
The advantage of qualified plans to employers is
A. Tax deductible contributions
B. Tax free earnings
C. No lump-sum payments
D. Taxable contributions
For personal life insurance, the lump-sum death benefit is received
A. Tax free
B. On a last-in-first-out basis
C. As taxable income
D. With taxable interest