Chapter 13 Flashcards
1
Q
what is included under the NAIC: life insurance model?
A
- narrative summary with policy features
- numeric summary with current, guaranteed and mid point APR
- annual report
2
Q
what is generally tax free for beneficiary ?
A
income
3
Q
what are the financial strength of insurer- ratings?
A
- AM Best
- Fitch
- Moody’s
- Standard and Poor
4
Q
what are annuities?
A
periodic payment that continues for a fixed period of time or for the duration of designated life or lives
5
Q
what is individual retirement account (IRA)?
A
allows workers with taxable compensation to make annual
6
Q
what is traditional IRA?
A
annual contributions for Traditional IRA are tax deductible, investment accumulates tax free and distribution are taxed upon withdrawal
7
Q
what is Roth IRA?
A
no income tax deductible, investment income accumulates tax free and qualified distributions are received tax free
8
Q
what is the 2023 maximum annual contribution for Roth IRA?
A
$6500
