INDIANA LIFE AND HEALTH INSURANCE
EXAM 2024 LATEST UPDATE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
LATEST VERSION | 100% PASS
GUARANTEED!
7-Pay Test - Ans > cumulative premiums paid during the first 7 years of
the policy must not exceed the total amount of net level premiums that
would be required to pay the policy up using guaranteed mortality
costs and interest; new test required any time there is a material
change to a policy (increase in death benefit); essentially, determines if
policy is "overfunded" or if it's a MEC
Annuity Period - Ans > known as annuitization period, liquidation
period, or pay-out period; time during which the sum that has been
accumulated during the accumulation period is converted into a stream
of income payments to the annuitant; may last for the lifetime of the
annuitant or for a specified period, which could be longer or shorter
Modified Endowment Contract (MEC) - Ans > any life insurance policy
that fails a 7-pay test; loses the standard tax benefits of a lifer insurance
contract; death benefit received by the beneficiary is tax free; cash
value: tax-deferred accumulations; any distributions are taxable,
including withdrawals and policy loans; distributions are taxed are
,taxed on LIFO basis - known as "interest-first" rule; distributions before
age 59 1/2 are subject to a 10% penalty
Owner Privileges of Adjustable Life - Ans > increase/decrease the
premium, change the premium-paying period, increase/decrease the
face amount of coverage, change the period of protection
Straight Life - Ans > charge a level annual premium for the lifetime of
the insured and provide a level, guaranteed death benefit
Dividends (policy) - Ans > non-taxed returns of unused premiums
Family Income Policy - Ans > principle wage earner is the only family
member insured
Annuity - Ans > contract that provides income for a specified period of
years, or for life; protects person against outliving his or her money;
vehicle for accumulation of money and the liquidation of an estate;
deferred grows tax free
Accumulation Period - Ans > the pay-in period; the period of time over
which the owner makes payments (premiums) into an annuity; period
during which payments earn interest on a tax-deferred basis
, Single Premium Immediate Annuity (SPIAs) - Ans > purchased with a
single lump sum payment and provides income payments that start
within 1 year from the date of purchase (typically makes first payment
as early as 1 month from purchase)
Annuity Income Amount Based On - Ans > amount of premium paid or
cash value accumulated; frequency of payment; interest rate;
annuitant's age and gender
Deferred Annuity - Ans > purchased with single lump sum (single
premium-deferred annuities) or is purchased thought periodic
payments (flexible premium-deferred annuities); grow tax free; income
payments begin sometime after one year from purchase; used to
accumulate funds for retirement; owner receives current interest rate
or guaranteed interest rate, whichever is higher; if surrendered prior to
age 59 1/2, income tax must be paid on gain, and 10% penalty will be
imposed on the taxable portion
Single Premium Deferred Annuities (SPDAs) - Ans > annuity is
purchased with single payment, but benefit isn't paid until after one
year or more has elapsed
Flexible Premium Deferred Annuity (FPDAs) - Ans > annuity is
purchased with multiple payments that can vary from year to year (e.g.
portion of each paycheck), and the benefit payments begin sometime
after one year from the date of purchase (e.g. payouts start at age 65)
EXAM 2024 LATEST UPDATE QUESTIONS
AND VERIFIED ANSWERS GRADED A+ |
LATEST VERSION | 100% PASS
GUARANTEED!
7-Pay Test - Ans > cumulative premiums paid during the first 7 years of
the policy must not exceed the total amount of net level premiums that
would be required to pay the policy up using guaranteed mortality
costs and interest; new test required any time there is a material
change to a policy (increase in death benefit); essentially, determines if
policy is "overfunded" or if it's a MEC
Annuity Period - Ans > known as annuitization period, liquidation
period, or pay-out period; time during which the sum that has been
accumulated during the accumulation period is converted into a stream
of income payments to the annuitant; may last for the lifetime of the
annuitant or for a specified period, which could be longer or shorter
Modified Endowment Contract (MEC) - Ans > any life insurance policy
that fails a 7-pay test; loses the standard tax benefits of a lifer insurance
contract; death benefit received by the beneficiary is tax free; cash
value: tax-deferred accumulations; any distributions are taxable,
including withdrawals and policy loans; distributions are taxed are
,taxed on LIFO basis - known as "interest-first" rule; distributions before
age 59 1/2 are subject to a 10% penalty
Owner Privileges of Adjustable Life - Ans > increase/decrease the
premium, change the premium-paying period, increase/decrease the
face amount of coverage, change the period of protection
Straight Life - Ans > charge a level annual premium for the lifetime of
the insured and provide a level, guaranteed death benefit
Dividends (policy) - Ans > non-taxed returns of unused premiums
Family Income Policy - Ans > principle wage earner is the only family
member insured
Annuity - Ans > contract that provides income for a specified period of
years, or for life; protects person against outliving his or her money;
vehicle for accumulation of money and the liquidation of an estate;
deferred grows tax free
Accumulation Period - Ans > the pay-in period; the period of time over
which the owner makes payments (premiums) into an annuity; period
during which payments earn interest on a tax-deferred basis
, Single Premium Immediate Annuity (SPIAs) - Ans > purchased with a
single lump sum payment and provides income payments that start
within 1 year from the date of purchase (typically makes first payment
as early as 1 month from purchase)
Annuity Income Amount Based On - Ans > amount of premium paid or
cash value accumulated; frequency of payment; interest rate;
annuitant's age and gender
Deferred Annuity - Ans > purchased with single lump sum (single
premium-deferred annuities) or is purchased thought periodic
payments (flexible premium-deferred annuities); grow tax free; income
payments begin sometime after one year from purchase; used to
accumulate funds for retirement; owner receives current interest rate
or guaranteed interest rate, whichever is higher; if surrendered prior to
age 59 1/2, income tax must be paid on gain, and 10% penalty will be
imposed on the taxable portion
Single Premium Deferred Annuities (SPDAs) - Ans > annuity is
purchased with single payment, but benefit isn't paid until after one
year or more has elapsed
Flexible Premium Deferred Annuity (FPDAs) - Ans > annuity is
purchased with multiple payments that can vary from year to year (e.g.
portion of each paycheck), and the benefit payments begin sometime
after one year from the date of purchase (e.g. payouts start at age 65)
