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Missouri Life And Health Insurance
;Certified Q&A 2025
Master contract - correct-answer-- Issued to the sponsor of the group, usually the
employer
- Between sponsor and company
- Employee not in the contract
"Multiple employer trust" - correct-answer-- Bond together to get competitive
rates
"Conversion is" - correct-answer-- State mandated
Conversion privilege - correct-answer-- If an employer terminates membership in
the insured group, employee has the right to convert to an individual policy
WITHOUT providing insurability
- Face amount of death benefit will be the same as group but premium will be
higher
- Employee has 31 days after termination to convert
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Noncontributory plan - correct-answer-- Employer pays all of the premiums
- Insurer requires 100% of eligible employees be included in the plan
Contributory plan - correct-answer-- Premiums payed between the employer and
employees
- Employer requires that 75% of eligible employees be included in plan
Individual retirement account (IRA) - correct-answer-- Anyone can do with income
- Make tax deductible contributions until age 70.5
- "If I put in $5,000, I can take out $5,000 on taxes
Roth IRA - correct-answer-- IRA funded with after-tax contributions
- Contributions can continue beyond 70.5
- Grow tax free as long as account open for at least 5 years
- Lose tax deduction
Rollover - correct-answer-- Tax-free distribution on one retirement plan to
another
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- IRA rollover must be completed within 60 days at time money is taken out of first
plan
Keogh plans - correct-answer-- Self-employed person plans
403 (B) - correct-answer-- Teachers
- Non-profit organizations
"Not qualified" - correct-answer-- Split dollar
Survivor protection - correct-answer-- Life insurance can provide the funds
necessary for survivors of the insured to be able to maintain their lifestyle when
the insured dies
Liquidity - correct-answer-- Policy's cash value can be borrowed at anytime and
used for immediate needs
"Business is all of the following except" - correct-answer-- The insured
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"Key person in the company quits" - correct-answer-- Do whatever they want with
policy
Premiums - correct-answer-- Not taxible
Death benefit - correct-answer-- Tax free if taken as a lump sum
Policy loans - correct-answer-- Policyowner may borrow against the policy's cash
value
- Cash value not income taxable
- Insurer must provide 30 days written notice to policy owner if the policy will
lapse
- Insurance companies can defer a policy loan up to 6 months
Accelerated benefits - correct-answer-- Benefits are tax free
Missouri Life And Health Insurance
;Certified Q&A 2025
Master contract - correct-answer-- Issued to the sponsor of the group, usually the
employer
- Between sponsor and company
- Employee not in the contract
"Multiple employer trust" - correct-answer-- Bond together to get competitive
rates
"Conversion is" - correct-answer-- State mandated
Conversion privilege - correct-answer-- If an employer terminates membership in
the insured group, employee has the right to convert to an individual policy
WITHOUT providing insurability
- Face amount of death benefit will be the same as group but premium will be
higher
- Employee has 31 days after termination to convert
,2|Page
Noncontributory plan - correct-answer-- Employer pays all of the premiums
- Insurer requires 100% of eligible employees be included in the plan
Contributory plan - correct-answer-- Premiums payed between the employer and
employees
- Employer requires that 75% of eligible employees be included in plan
Individual retirement account (IRA) - correct-answer-- Anyone can do with income
- Make tax deductible contributions until age 70.5
- "If I put in $5,000, I can take out $5,000 on taxes
Roth IRA - correct-answer-- IRA funded with after-tax contributions
- Contributions can continue beyond 70.5
- Grow tax free as long as account open for at least 5 years
- Lose tax deduction
Rollover - correct-answer-- Tax-free distribution on one retirement plan to
another
,3|Page
- IRA rollover must be completed within 60 days at time money is taken out of first
plan
Keogh plans - correct-answer-- Self-employed person plans
403 (B) - correct-answer-- Teachers
- Non-profit organizations
"Not qualified" - correct-answer-- Split dollar
Survivor protection - correct-answer-- Life insurance can provide the funds
necessary for survivors of the insured to be able to maintain their lifestyle when
the insured dies
Liquidity - correct-answer-- Policy's cash value can be borrowed at anytime and
used for immediate needs
"Business is all of the following except" - correct-answer-- The insured
, 4|Page
"Key person in the company quits" - correct-answer-- Do whatever they want with
policy
Premiums - correct-answer-- Not taxible
Death benefit - correct-answer-- Tax free if taken as a lump sum
Policy loans - correct-answer-- Policyowner may borrow against the policy's cash
value
- Cash value not income taxable
- Insurer must provide 30 days written notice to policy owner if the policy will
lapse
- Insurance companies can defer a policy loan up to 6 months
Accelerated benefits - correct-answer-- Benefits are tax free
