Life Insurance Final Exam Questions and Answers Passed with 100%

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Life Insurance Final Exam Questions and Answers Passed with 100% A person who is in good health and does not drink nor smoke is considered ✔✔a preferred risk Upon death of an annuitant during t... he accumulation period of a deferred annuity, the proceeds: ✔✔Are taxable to the beneficiary above the annuitants cost basis Life insurance sold to fund a small partnership buy/sell agreement is also called ✔✔Cross purchase plan Although excluded in the contract, a court may direct the insurer to pay a claim under the doctrine of: ✔✔Reasonable expectations What insurance product has a flexible premium, fixed rate of return, tax deferred growth and a death benefit equal to the cash value ✔✔Flexible premium deferred annuity A 30 year old client invests $20000 in a deferred annuity, which grows to $50000 in 20 years. at age 50, the annuitant takes a partial withdrawal in the amount of $10000. How is this taxed? ✔✔100% ordinary income plus 10% penalty All of the following are true about group life insurance except: ✔✔Proceeds paid to the beneficiary are taxable A life insurance benefit payable while the insured is still living is ✔✔accelerated benefits All of the following are guaranteed on a participating whole life insurance policy, except ✔✔The dividend scale A preferred risk has a ✔✔Longer than average life expectancy On most qualified retirement plans, such as traditional IRAs, distributions must begin no later than age 70 1/2 If they dont, as excise tax of _____ applies: ✔✔50% On a refund annuity, who is entitled to the refund: ✔✔the beneficiary [Show More]

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