Annuity &Group Life Plans Flashcards
What type of group life insurance offers a guaranteed annually renewable term policy?
A. Group term life
B. Group whole life
Group term life
Which statement about noncontributory employee group life insurance is false?
A. All eligible employees must be covered
B. No evidence of insurability required
C. Must have conversion rights
D. A minimum number of employees is required to participate
A minimum number employees is required to participate.
All employees must be covered
Group life insurance policies are generally written as:
A. Increasing term
B. Group whole life
C. Annual renewable term
Annually renewable term
An employee with $25,000 group term coverage was recently fired. The employees group coverage may be converted to:
A. $25,000 individual term policy
B. $25,000 individual whole life policy
$25,000 individual whole life policy
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
A. Entire contract
B., conversion
Conversion
Under federal tax laws, what tax treatment for an employer providing $50,000 contributory group term life to all eligible employees?
A. Portion of the premiums paid by the employer may be taxed deduction
C. Portion of the death proceeds are tax-deductible by beneficiary
B. Portion of the premiums paid by the employee may be texted action
Portion of premiums paid by the Employer may be tax deduction
When employee is terminated, which statement about group term life conversion period
Is true?
A. Employers provide evidence of insurability for conversion
B. Policy proceeds will not be paid in employee dies during the conversion period
C. Policy proceeds will be paid if employee dies during the conversion period
Policy proceeds will be paid if the employee dies during conversion period
With a Trustee group policy, who will be eligible for a certificate of coverage?
A. Employee
B. Employer
Employee
K while in process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
A. No benefits are payable under master contract
B. Full benefits are payable under master contract
Full benefits are payable under master contract
Type of contract liquidated estate through Recurrent payments?
A. Universal life insurance
B. Annuity
Annuity
And purchase an annuity by making payments in the amount of no less than $100 quarterly. This describes which annuity:
A. Flexible installment deferred
B. Fixed installment deferred
C. Flexible premium
Flexible installment deferred
If an annuity is terminated prior to beginning at the income payment period, The contract owner receives:
A. No refund of money
B. Premiums paid up to termination date
C. The contract surrender value (charge) at the time
The contract surrender value at the time
This element of a single premium annuity is?
A. Deferred payment
B. Lump-sum payment
Lump sum payment
Variable annuities May invest premiums in all the following, except: A. Common stock B. Money market securities C. junk bonds D. Insurer corporate business account
Insurer corporate Business account
A immediate annuity consist of:
A. Variable premium
B. Flexible premiums
C. Single premium
Single premium
An individual who purchases a life annuity is given protection against:
A. Inflation
B. Risk of not having enough retirement income
C. The risk of living longer than expected
The risk of living longer than expected
The annuity represents the largest possible monthly payment to an individual Annuitant is:
A. Cash refund
B. Installment refund
C. Straight life annuity
Straight life annuity.
Pays the largest monthly benefit because it’s based on life expectancy. The risk is that it may die early and forfeit some of the value
P is 40 old lady & Would like to purchase an annuity that will provide a lifetime income stream beginning at age 60. Which of the following did she Not buy? A. Straight life deferred annuity B. Straight life annuity C. Immediate annuity D. Deferred annuity
Immediate annuity
T has annuity guarantees an income payment for the rest of his life. The contract also guarantees that if he dies before receiving payments for 20 years the remaining payments will be paid to his son for the balance 20 years. What annuity?
A. Fixed certain
B. Joint & full survivor
C. Life annuity with period certain
Life annuity with period certain
Annuity promises that if annuity dies before receiving payments equal to the correct value, The payments will continue to the beneficiary until contract value has been paid. Which one?
A. Installment refund annuity
B. Straight life annuity
C. Cash refund annuity
Installment refund annuity
Rick recently died and left behind a individual IRA account in his name. His widow was forwarded the balance of the IRA. What are qualifies for?
A. Death benefits
B. Marital deduction
C. Capital gains tax
Marital deduction
