Taxes, Retirement, And Other Insurance Concepts

Front 1

define earned income

Back 1

salary, wages, commissions; but not income from investments, unemployment benefits, etc.

Front 2

FIFIO (first in, first out)

Back 2

principle under which it’s assumed that the funds paid into the policy first will be paid out first

Front 3

LIFO (last in, first out)

Back 3

principle applied to asset management in life insurance products

it’s assumed that the funds paid into the policy last will be paid out first

Front 4

define gross income

Back 4

a person’s income before taxes/deductions

Front 5

define policy endowment

Back 5

maturity date

Front 6

define rollover

Back 6

withdrawal of the money from one qualified plan and placing it into another plan

Front 7

define vesting

Back 7

the right of a participant in a retirement plant to retain part/all of the benefits

Front 8

define tax deductible

Back 8

a reduction of taxable income

results in lower tax liability

Front 9

define taxable

Back 9

subject to taxation

payable to federal/state government

Front 10

define tax deferred

Back 10

taxes on investments/gains (interests/dividends)

Front 11

what are the personal uses of life insurance?

Back 11

survivor protection, estate (assets) creation, estate conservation, cash accumulation, liquidity: take asset and convert to cash quickly