Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Life > 8 - Other Life Topics 1 > Flashcards

8 - Other Life Topics 1 Flashcards

1
Q

Group members may convert to a new individual plan (based on the age, amount and form of coverage requested) within ________

A

-31 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Group members may convert to a new individual plan if:

A
  • member voluntarily leaves the group
  • group is disbanded
  • the insurer or fiduciary does not renew the group plan
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

_____________ of nonrenewal must be provided by the fiduciary to the member(s).

A

-45 days notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

If the member (employee or other covered persons) dies during the 31-day conversion election period, the beneficiary ________.

A

-receives the death benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

North Carolina statutes allow group plans to be either:

A
  • Contributory

- Non-Contributory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Contributory

A
  • employer and employee share premiums

- require 75% of eligible employees to participate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Non-Contributory

A
  • employer pays the entire premium

- require 100% participation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Premiums paid by an employer for an employee are NOT taxable to the employee on the premiums for up to a _______ death benefit.

A

-$50,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The premiums paid by the employer on amounts above ______ require the employer to add the premium as income to the employee W-2.

A

-$50,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Group plan contracts are generally written as ____________.

A

-group renewable annual term insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Group plan premiums are based on _________.

A

-ages and genders of the group at renewal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Although employee group plans are the most common, other group life insurance plans include the following:

A
  • Credit Life
  • Mortgage Life
  • Credit Life and Mortgage Life
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Credit Life is _________ insurance that covers the lives of debtors who have outstanding loans with a specified creditor.

A

-decreasing term life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Mortgage Life

is ________ insurance coverage that is designed to pay a debtor’s remaining mortgage balance if he or she dies.

A

-decreasing term life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

____________ policies are purchased to relieve the surviving family or estate of a deceased insured of any responsibility of the debt.

A

-Credit Life and Mortgage Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

IRA

A

-Individual Retirement Accounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Maximum amount of contribution towards an IRA is _______ for persons under 50 and _____ for persons age 50 and older

A
  • $5,500

- $6,500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Taxes will not be due until _______ for IRAs

A

-withdrawal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Withdrawals from IRAs before age ____ will have a ____ tax penalty as well as the ordinary income taxes due on the amount withdrawn.

A
  • 59 1/2

- 10%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Withdrawals from an IRA must begin by age ____ or penalties will be applied.

A

70 1/2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

IRA investments may be in variable or fixed annuities but not in _________.

A

-life insurance policies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The Roth Individual Retirement Account (IRA) allows individuals the opportunity to set-up retirement accounts using ________

A

-after-tax dollars

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Roth IRA rules dictate that as long as the account has been held for ______ and the owner is age _____ or older, he or she can withdraw from the account and won’t owe any federal taxes.

A
  • 5 years

- 59 1/2

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

One other important feature of the Roth Individual Retirement Account, different from the Traditional IRA, is there are no ________ that must begin at a specified age.

A

-forced withdrawals

25
Q

______ and ______ allow any qualified retirement plan deposits to move from one account to another account without taxation.

A
  • Rollovers

- Transfers

26
Q

In a ________ the plan disburses the money from the account directly to the account depositor. The depositor has taken __________ of the funds.

A
  • Rollover

- “Constructive Receipt”

27
Q

In a “rollover “ the original amount disbursed must be deposited into the new account within _____ to avoid taxes and penalties.

A

-60 days

28
Q

In a _______ the plan disburses the money directly to the new account. With this method, the depositor never took control of the money being disbursed.

A

-“transfer”

29
Q

Tax-Sheltered Annuities are also know by…

A

-IRS code number 403-b

30
Q

Tax-Sheltered Annuities are available to employees of:

A
  • Nonprofit charitable organizations

- educational, religious and other organizations approved by the IRS

31
Q

The IRS has an early withdrawal penalty of ___ before age _____ for Tax-Sheltered Annuities

A
  • 10%

- 59 1/2

32
Q

Keogh Plans are also known as…

A

-HR-10 Plans

33
Q

Keogh plans allow self-employed individuals to fund their retirement with _____ dollars similar to corporate pension plans. Contributions are limited to ____ of self-employed earned income up to an annual maximum.

A
  • pre-tax

- 100%

34
Q

Keogh Plan eligible employees must be:

A
  • at least 21 years of age
  • worked for employer for at least 1 year
  • work at least 1,000 hours per year
35
Q

SEP

A

-Simplified Employee Pension

36
Q

A ____________ plan provides business owners with a method to contribute toward their own retirement savings. Contributions are made to an Individual Retirement Account (IRA) set up for each plan participant.

A

-Simplified Employee Pension

37
Q

If the employer has employees he or she is required to set-up a SEP for all employees who meet the following qualifications:

A
  • 21 or older
  • worked for the employer for at least 3 of the previous 5 years
  • have received at least $600 in compensation
38
Q

The maximum allowable contributions to an employee SEP is the lesser of _____ of annual compensation or _____ for 2018 and is subject to annual cost-of-living adjustments for later years.

A
  • 25%

- $55,000

39
Q

A 401K is a qualified plan established by employers to which eligible employees may make salary deferral contributions on ___________ basis

A

-post-tax and/or pre-tax

40
Q

Two types of Buy-Sell Agreements:

A
  • The Cross-purchase plan

- The Entity Plan

41
Q

________ allows each person involved in the Buy-Sell Agreement to purchase life insurance on the other individuals with a death benefit equal to each person’s share of the buy-out.

A

-Cross-purchase Plan

42
Q

________ allows the business to purchases policies on the individuals in the Buy-Sell Agreement.

A

-Entity Plan

43
Q

The official name of the Social Security Program is…

A

-Old Age, Survivors and Disability Insurance (OASDI)

44
Q

In order to receive Social Security Retirement Benefits, a person must be _______.

A

-“fully insured”

45
Q

Fully Insured is defined as a person who has ______ of Social Security covered work in their lifetime

A

-40 quarters (10 years)

46
Q

Social Security Retirement Benefits can be paid beginning at age _____.

A

-62

47
Q

If an individual begins Social Security retirement at age _____, the retirement benefit will be a reduced amount. The reduction currently is ______ of the recipient’s normal retirement amount.

A
  • 62

- 20% - 30%

48
Q

The Internal Revenue Service (IRS) allows employees of some charities to set-up a qualified retirement plan using a Tax Sheltered Annuity (TSA). This Annuity plan has the IRS Code of:

A

-403-B

49
Q

Mortgage Life is what type of Life Insurance?

A

-Decreasing Term

50
Q

Which Buy and Sell Agreement requires the partners in the business to purchase and pay for the life policies?

A

-Cross-purchase Plan

51
Q

The 403-b will have a ________ tax penalty if withdrawals are made prior to age 59½.

A

-10%

52
Q

The earliest age that a person may receive his or her Social Security retirement benefits is age ______.

A

-62

53
Q

S, D and P are in business together. The three equal partners decide to enter into a Buy and Sell Agreement that will be funded by life insurance. If the partners use a Cross Purchase Buy and Sell Agreement, how many life insurance policies will be needed?

A

-6

54
Q

Credit Life is what type of Life Insurance?

A

-Decreasing Term

55
Q

Social Security (OASDI) can provide a benefit to the surviving spouse of a deceased worker. The period of time that the spouse will NOT receive benefits before eligibility for retirement benefits is called:

A

-the “black-out” period

56
Q

Group Life insurance is which of the following types of life insurance?

A

Level Term

57
Q

D, age 55, withdrew $2,500 from her Individual Retirement Account (IRA) which consists entirely of pre-tax contributions. In addition to including that amount in her taxable income, she has to pay a penalty of;

A

-$250

58
Q

Employer group life insurance plans in which employees pay part of the premiums are referred to as:

A

-contributory plans

59
Q

Q, C and E are in business together. The three equal partners decide to enter into a Buy and Sell Agreement that will be funded by life insurance. If the partners use an Entity Plan Buy and Sell Agreement how many life insurance policies will be needed?

A

-3

Life (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions