WAB Insurance Flashcards
Under COBRA the employer can charge
102% of premium
Partial disability rider is
Usually free
To exercise a guaranteed insurance option, you must
Show proof of higher earnings
Sale price of an insurance policy owned by an employer is
The greater of the cash value or premium paid by the employer
Group health insurance allows for conversion to
An individual policy but DISABILITY is not convertible
If employers pay disability premiums, benefits are
Taxable to the employee
Split dollar insurance is an
Employee benefit (not key person)
BOE policy premiums
Are not deductible (benefits tax free)
Insurance protects people from
Risk
Partially self funded plans
Insurance pays claims in excess of X amount
Risk retention
High deductible and reduces premiums
A.M Best ratings
A++ highest rating
Waiver of premium clause
Causes extra premiums to add feature to policy
Uninsured motorist is
Liability protection
Unemployment comp is
Taxable over $2400
HRA
Solely employer funded and reimbursed for med expenses up to max amount per coverage period
Medicare LTC is ______ but Medicaid is _____
1) 100 days
2) NOT
Companies can deduct interest expense on loans taken against employee life insurance policies up to_____
$50k per policy
Group Disability Insurance is
Cheaper for employees and more liberal underwriting
VEBA benefits don’t include
Deferred compensation plans or retirement benefits (pensions, annuities, etc.)
FSA’s
- no income, FICA, FUTA taxes
- no LTC
- no HSA
- use it or lose it for dependent care by 12/31
Annuities held by entities are
Taxed on income in the year received or in the year accrued
For someone looking to take a loan from their policy, _______ is the best dividend option
5th yr
Someone who struggles with saving should get a
Whole life policy (universal/flexible is no no)
Owner of an S-corp
TAX FREE BENEFITS
For LTC premiums
The older you are, the more you can deduct
HMO policies must
Go through PCP gatekeeper, pay monthly fee, and only in network is covered
If a spouse ceases to be a resident of the same household, they are still covered under the PAP until the earliest of:
- end of 90days following the move
- date of the spouses new policy
- the end of the OG policy period
Apply for Medicare….
3mo before your 65th bday
Medicare premiums can be higher based on
AGI 2 yes before enrolling
Medicare part A will cover all but _________ for the first 1-____ days of inpatient care
- flat deductible
- 1-60 days
(61-90days you pay $400 co insurance, 91+ $800 co insurance)
