Life Insurance and Health Insurance LATEST EXAM
ACTUAL WITH QUESTIONS AND CORRECT
DETAILED ANSWERS |ALREADY GRADED A+
Section 529 Plans - answer--- state provided
- can be funded by after tax dollars
- can pay prepaid tuition
- All earnings exempt from federal taxes
- If withdrawn for unqualified withdrawl, 10% penalty
Roth IRA - answer--private retirement plan that taxes income before it is
saved, but which does not tax interest on that income when funds are
used upon retirement
Distributions don't have to start before 70.5
401(k) plan - answer--Elective deferral plan that allows employee to
reduce compensation by a stated percentage on a tax deductible/ tax
differed basis; often the employer matches the employee contributions
Simplified Employee Pension (SEP) - answer--A qualified plan in which a
smaller employer contributes specified amounts directly into IRA
accounts on behalf of eligible employees
,403(b) plan - answer--An elective deferral plan for employees of
organizations such as school systems, churches, and hospitals
Keogh Plan - answer--Retirement plan for self-employed individual and
their qualified employees
Rollover - answer--Tax free withdrawal of cash or other assets from one
retirement program and its reinvestment in another program. It is not
considered income and it is not taxable until a later withdrawal. Has to
be completed in 60 days
Transfer - answer--When amounts of a qualified plan are transferred to
another qualified plan
Employee Retirement Income Security Act (ERISA) - answer--Federal law
that increased the responsibility of pension plan trustees to protect
retirees, established certain rights related to vesting and portability, and
created the Pension Benefit Guarantee Corporation
profit-sharing plan - answer--a benefit whereby employees may share in
the profits of the business
Catch-up Contributions - answer---for those aged 50 or older
-additional $1,000 annually
,**Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)
- established the catch up provisions**
Rollover time frame - answer--60 days
Keogh Plan - answer--A federally-approved, tax-deferred savings
program for self-employed people, allowing them to set money aside
for their retirement.
Annuity Period - answer--the payout period of an annuity
Flexible Premium Annuity - answer--allows the owner to vary the
premium payments
Deferred Annuity - answer--An annuity that starts sometime in the
future.
Variable Annuity - answer--Annuity that has a varying rate of return
based on the mutual funds in which one has invested
Gramm-Leach-Bliley Act - answer--requires financial institutions to
ensure the security and confidentiality of customer data
, Certificate of Insurance (COI) - answer--proof that the insured has
insurance
Market conduct - answer--refers to the marketing practices of insurers
and agents that involve interaction with insureds, claimants, or
consumers
expense loading - answer--the amount needed to pay all expenses,
including commissions, general administrative expenses, state premium
taxes, acquisition expenses, and an allowance for contingencies and
profit
Straight Life Annuity - answer--The payout option that will guarantee an
annuity payment for the remainder of an individual's life. This option
typically provides the largest monthly payment.
Refund Life Annuity - answer--Provides annuity payments for the
annuitant's lifetime with the guarantee that in no event will total
income be less than the purchase price of the contract. If the annuitant
dies before receiving this amount, the difference is paid to a named
beneficiary either as a cash refund or in installments.
convertible term policy - answer--
ACTUAL WITH QUESTIONS AND CORRECT
DETAILED ANSWERS |ALREADY GRADED A+
Section 529 Plans - answer--- state provided
- can be funded by after tax dollars
- can pay prepaid tuition
- All earnings exempt from federal taxes
- If withdrawn for unqualified withdrawl, 10% penalty
Roth IRA - answer--private retirement plan that taxes income before it is
saved, but which does not tax interest on that income when funds are
used upon retirement
Distributions don't have to start before 70.5
401(k) plan - answer--Elective deferral plan that allows employee to
reduce compensation by a stated percentage on a tax deductible/ tax
differed basis; often the employer matches the employee contributions
Simplified Employee Pension (SEP) - answer--A qualified plan in which a
smaller employer contributes specified amounts directly into IRA
accounts on behalf of eligible employees
,403(b) plan - answer--An elective deferral plan for employees of
organizations such as school systems, churches, and hospitals
Keogh Plan - answer--Retirement plan for self-employed individual and
their qualified employees
Rollover - answer--Tax free withdrawal of cash or other assets from one
retirement program and its reinvestment in another program. It is not
considered income and it is not taxable until a later withdrawal. Has to
be completed in 60 days
Transfer - answer--When amounts of a qualified plan are transferred to
another qualified plan
Employee Retirement Income Security Act (ERISA) - answer--Federal law
that increased the responsibility of pension plan trustees to protect
retirees, established certain rights related to vesting and portability, and
created the Pension Benefit Guarantee Corporation
profit-sharing plan - answer--a benefit whereby employees may share in
the profits of the business
Catch-up Contributions - answer---for those aged 50 or older
-additional $1,000 annually
,**Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)
- established the catch up provisions**
Rollover time frame - answer--60 days
Keogh Plan - answer--A federally-approved, tax-deferred savings
program for self-employed people, allowing them to set money aside
for their retirement.
Annuity Period - answer--the payout period of an annuity
Flexible Premium Annuity - answer--allows the owner to vary the
premium payments
Deferred Annuity - answer--An annuity that starts sometime in the
future.
Variable Annuity - answer--Annuity that has a varying rate of return
based on the mutual funds in which one has invested
Gramm-Leach-Bliley Act - answer--requires financial institutions to
ensure the security and confidentiality of customer data
, Certificate of Insurance (COI) - answer--proof that the insured has
insurance
Market conduct - answer--refers to the marketing practices of insurers
and agents that involve interaction with insureds, claimants, or
consumers
expense loading - answer--the amount needed to pay all expenses,
including commissions, general administrative expenses, state premium
taxes, acquisition expenses, and an allowance for contingencies and
profit
Straight Life Annuity - answer--The payout option that will guarantee an
annuity payment for the remainder of an individual's life. This option
typically provides the largest monthly payment.
Refund Life Annuity - answer--Provides annuity payments for the
annuitant's lifetime with the guarantee that in no event will total
income be less than the purchase price of the contract. If the annuitant
dies before receiving this amount, the difference is paid to a named
beneficiary either as a cash refund or in installments.
convertible term policy - answer--
