Colorado Life & Health Insurance
Exam | Guide with Questions and
Verified Answers | 100% Correct
()
Question:
Rollover Rules in Retirement Plans
Answer:
Must be done within 60 days of a distribution
Question:
Types of Qualified Plans
Answer:
-IRA; Individual Retirement Account
-SEP IRA; Simplified Employee Pension IRA
-Keogh Plan (HR-10)
-TSA; Tax Sheltered Annuity
-401K
,Question:
IRA; Individual Retirement Account
Answer:
-Available to anyone with earned income---TEST
-If you have a non working spouse a Spousal IRA is allowed--TEST
-ROTH IRA's are always funded with after tax dollars, exception to pre-tax of
qualified plans; tax free when taken out
Question:
Keogh Plan (HR-10)
Answer:
-For self-employed, partners and their employees --TEST
Question:
TSA; Tax Sheltered Annuity
Answer:
-Only annuity that is considered qualified
-2 types of eligible employees
-IRC 403b, employees of school teachers, administrators, and staff
-IRC 501c-3, employees of religious affiliated organizations & non-profits
,Question:
Non-Qualified Retirement Plans
Answer:
-Usually no vesting until retirement-often discriminatory
-Usually set up as deferred compensation by small companies
Question:
Personal Insurance Needs
Answer:
-Capital Needs approach - Make sure client has enough insurance to meet
needs should they die tomorrow for things like paying off the house, putting
kids through college, funeral expenses, etc.
-Human Value approach - Deals with what would be the loss, income wise,
generally results in higher needs
Question:
Types of Business Insurance Needs
Answer:
-Key Employee Life Insurance
-Partnership Life Insurance
-Split Dollar Life Insurance
, Question:
Key Employee Life Insurance
Answer:
-Benefits company not person
-Business is beneficiary
-Premiums paid are not tax deductible
-Proceeds paid are not taxable
-In the event that the key employee no longer works for the company, yet
premiums are still paid, and they die, policy proceeds would go to company--
TEST
Question:
Partnership Life Insurance
Answer:
-Requires buy-sell agreement drafter by lawyer
-Each partner buys policy on the life of the other
-If partner dies, policy pays proceeds to the surviving partner
-Sometimes called a cross purchase buy-sell agreement
-If there are 3 partners a total of 6 policies would have to be sold
Exam | Guide with Questions and
Verified Answers | 100% Correct
()
Question:
Rollover Rules in Retirement Plans
Answer:
Must be done within 60 days of a distribution
Question:
Types of Qualified Plans
Answer:
-IRA; Individual Retirement Account
-SEP IRA; Simplified Employee Pension IRA
-Keogh Plan (HR-10)
-TSA; Tax Sheltered Annuity
-401K
,Question:
IRA; Individual Retirement Account
Answer:
-Available to anyone with earned income---TEST
-If you have a non working spouse a Spousal IRA is allowed--TEST
-ROTH IRA's are always funded with after tax dollars, exception to pre-tax of
qualified plans; tax free when taken out
Question:
Keogh Plan (HR-10)
Answer:
-For self-employed, partners and their employees --TEST
Question:
TSA; Tax Sheltered Annuity
Answer:
-Only annuity that is considered qualified
-2 types of eligible employees
-IRC 403b, employees of school teachers, administrators, and staff
-IRC 501c-3, employees of religious affiliated organizations & non-profits
,Question:
Non-Qualified Retirement Plans
Answer:
-Usually no vesting until retirement-often discriminatory
-Usually set up as deferred compensation by small companies
Question:
Personal Insurance Needs
Answer:
-Capital Needs approach - Make sure client has enough insurance to meet
needs should they die tomorrow for things like paying off the house, putting
kids through college, funeral expenses, etc.
-Human Value approach - Deals with what would be the loss, income wise,
generally results in higher needs
Question:
Types of Business Insurance Needs
Answer:
-Key Employee Life Insurance
-Partnership Life Insurance
-Split Dollar Life Insurance
, Question:
Key Employee Life Insurance
Answer:
-Benefits company not person
-Business is beneficiary
-Premiums paid are not tax deductible
-Proceeds paid are not taxable
-In the event that the key employee no longer works for the company, yet
premiums are still paid, and they die, policy proceeds would go to company--
TEST
Question:
Partnership Life Insurance
Answer:
-Requires buy-sell agreement drafter by lawyer
-Each partner buys policy on the life of the other
-If partner dies, policy pays proceeds to the surviving partner
-Sometimes called a cross purchase buy-sell agreement
-If there are 3 partners a total of 6 policies would have to be sold
