FICEP Part 2 2024/2025 updated Questions And Answers 100% correct Verified

401kPlan A plan which allows employees to make tax-deferred contributions to retirement savings accounts. Many employers match these contributions at a specified ratio to help retirement savings build faster. BeneficiaryThe person or persons who are designated to receive the amount of the death benefit if the policyholder dies. Cafeteria PlanTax-qualified flexible benefit plans that are offered by participating employers. It was created by the internal Revenue Code Section 125 Capital GainsThe difference between what you pay for an investment--stock, your home, or another possession-- and what you earn when the item is sold Compound interestThe ability of savings to grow when the principal and interest are left untouched. The member earns a return both on the original principal and on all the interest that accrues over time Death benefitthe amount that is paid upon the death of the policy-holder deductiblethe amount that the policy-holder must pay before insurance begins to cover expenses