Don’t Knows Most Recent Flashcards
Which of these non-forfeiture options continue a buildup of cash value?
Reduced paid up
A policy owner may generate taxable income from which of the following dividend options?
Accumulation at interest
How long does the coverage normally remain on a limited pay life policy?
Age 100
Which of the following is true about a qualified retirement that is top-heavy?
More than 60% of plan assets are in key employee accounts
STUDY
Life insurance immediately creates an estate upon the death of the insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable life
STUDY
B receives yearly dividends and interest from a PARTICIPATING life insurance policy. Which of these should B include as gross income for federal income tax purposes?
Interest only
STUDY
How are policy owner dividends treated in regards to Income Tax?
Interest on accumulations is taxed
Which of the following statements about accumulated interest earned on dividends from an insurance policy is true?
Taxed as ordinary income
All of these are characteristics of an adjustable life policy, except:
Face amount can be adjusted using policy dividends
Which of these types of life insurance allows the policy owner to have level premiums, and to also choose from a selection of investment options?
Variable life
STUDY
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable life
A company that owns a life insurance policy on one of its key employees may do all of the following except
Change the policy’s interest rate
The amount of coverage on a group credit life policy is limited to:
The insured’s total loan value
All of these statements about equity index life insurance are correct, except:
The premiums can be lowered or raised, based on investment performance
J is issued a life insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first five years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy’s death benefit also remains at $100,000. Which type of life insurance policy is this?
Modified premium life
