LLQP EXAM
What is legal capacity? - answer Anyone over 18 is presumed to be capable
What type of life insurance has the benefit of cost sharing? - answer Group life insurnace
Who are preferred beneficiaries? - answer 1. Spouses
2. Children
3. Grandchildren
4. Parent of life insured
How long must taxpayers keep all of their records? - answer 6 years for the end of the tax year.
In what scenario are individual life insurance premiums tax deductible? - answer If they are required as collateral for a loan - the portion that is the actual premium attributable to the loan (NCPI).
When are group life insurance premiums tax deductible? - answer If the employer pays them and attributes them as a taxable benefit to the employee, they are tax deductible.
How are group health insurance premiums taxed? - answer They are tax deductible for the employer but not a taxable benefit for the employee.
How are individual health insurance premiums taxed? - answer Private health plans can be claimed as an eligible medical expense.
How are group disability premiums and proceeds taxed? - answer If the employer deducts them, the benefits are taxable in the hands of the employee when paid. The opposite is true when the employer pays with after tax dollars.
How do you calculate the taxable policy gain? - answer This is the proceeds of disposition (CSV) less the ACB
What is the ACB for an insurance policy? - answer This is the premiums paid less the NCPI
What is the proper term for a segregated fund? - answer This is an individual variable insurance contract.
What is legal capacity? - answer Anyone over 18 is presumed to be capable
What type of life insurance has the benefit of cost sharing? - answer Group life insurnace
Who are preferred beneficiaries? - answer 1. Spouses
2. Children
3. Grandchildren
4. Parent of life insured
How long must taxpayers keep all of their records? - answer 6 years for the end of the tax year.
In what scenario are individual life insurance premiums tax deductible? - answer If they are required as collateral for a loan - the portion that is the actual premium attributable to the loan (NCPI).
When are group life insurance premiums tax deductible? - answer If the employer pays them and attributes them as a taxable benefit to the employee, they are tax deductible.
How are group health insurance premiums taxed? - answer They are tax deductible for the employer but not a taxable benefit for the employee.
How are individual health insurance premiums taxed? - answer Private health plans can be claimed as an eligible medical expense.
How are group disability premiums and proceeds taxed? - answer If the employer deducts them, the benefits are taxable in the hands of the employee when paid. The opposite is true when the employer pays with after tax dollars.
How do you calculate the taxable policy gain? - answer This is the proceeds of disposition (CSV) less the ACB
What is the ACB for an insurance policy? - answer This is the premiums paid less the NCPI
What is the proper term for a segregated fund? - answer This is an individual variable insurance contract.
