Help Flashcards
Group life ins is a single policy to provide to members of a group
Which of following is CORRECT
Each member covered receives a policy
Coverage cannot be converted when individual leaves group
Premiums are determined by age occupational and individual
100 participation of members is required in noncontributory plans
100 ppt is required in noncontributory plans
Incorrect regarding noncontributory group plan
Require 100 employee ppt
Emp pays 100 of premiums
Ends rec individual policies
Help to reduce adverse selection against the insurer
INCORRECT: Emp rec individual policies
He quits and converts group policy to individual policy premium will be based on his
Attained age
Emp insured under her employer’s group life plan
If she terminates her group coverage which is INCORRECT
Insured may convert coverage to individual policy within 31 days
Premium for individual coverage will be based upon attained age
May choose to convert to term or permanent individual coverage
May choose to convert to term or permanent individual coverage
When group coverage is converted to individual policy insurer will determine
Type of ins usually permanent ins
Emp quits job on may 15 and doesnt convert his group life to individual for 2 weeks; dies in freak accident on June 1. Which best describes
Insurer will pay death benefit from group policy to beneficiary
Insurer will pay a reduced death benefit to beneficiary
Insurer will pay death benefit minus one month’s premium
Insurer will pay nothing bc employee has terminated group ins and hasn’t started individual one
Insurer will pay full death benefit from group policy to beneficiary
Qualified retirement plans
Have tax advantages
Require no govt approval and used as means for employer to discriminate in favor of valuable employee with regard to Emp benefits
Non qualified retirement plans
Individual annuities and deferred compensation plans for highly paid executives split dollar ins arrangements and section 162 exec bonus plans
Non qualified plans
Currently tax deductible
Approved by irs
Cannot discriminate
Earnings grow tax deferred
Withdrawals are taxed
Qualified retirement plan
Not currently tax deductible
Does not need irs approval
Can discriminate
Grow tax deferred
Excess over cost basis is taxed
Non qualified retirement
All true regarding tax qualified annuities except
Must be approved by irs
Withdrawals are taxed
Empr contributions are not tax deductible
Annuity earnings are tax deferred
Emp contributions are not tax deductible
Emp contributions made to a qualified plan are
After tax
Taxed annually as salary
Subject to vesting requirements
May discriminate in favor of highly paid
Subject to vesting requirements
Which does not require owner to start taking distributions at age 73
Non qualified ira
Standard ira
Traditional ira
Both ira
Roth IRA
Retirement plan is qualified
Noncancellable
Approved by irs
Has penalty for early withdrawal
Accepts after tax contributions
Approved by irs
