Life Insurance and Retirement Planning – SELF DIRECTED FINAL EXAM (IL 6000112037) (2023)

In a defined contribution plan, the investment risk is borne by the:

All of the following are dangers of low risk investment strategies EXCEPT:

The amount of money that can be tax-deferred in an annuity is:

Which of the following is the best tool to provide estate liquidity?

Sarah dies and all debts and expenses have now been paid from her estate. The amount left in her estate is known as which of the following?

The deductible contribution to a profit sharing plan is:

Sylvia will consider only low-risk investment strategies. While this is her choice, you should be prepared to explain to her that there are certain dangers inherent in low risk investment strategies. Which of the following is NOT one of those dangers?

Bob is an IRA owner who wishes to defer taxation on a distribution received from his IRA. Bob has:

John’s annuity payments are made for a guaranteed period whether he is alive or not. Which type of annuity does he own?

For many in the Baby Boom generation, Social Security benefits for early retirement will:

Sherman’s retirement savings arrangement permits no up-front deduction when he makes contributions, but he doesn’t have to pay tax later when he takes qualifying distributions. Which retirement arrangement does he have?

An applicable credit amount (formerly, unified credit) is available against the federal estate tax if:

Goal-setting in retirement planning should include all of the following EXCEPT:

Which of the following is NOT a characteristic of an “ideal” investment?

A worker’s Social Security retirement benefit is based on:

The premiums for a universal life policy:

The effective sale of products for survivor retirement income funded with life insurance must rely on:

Marge has a flexible life insurance product that she has owned for 21 years. Marge wants to withdraw some cash, but she doesn’t want to incur an income tax liability. How much can Marge withdraw?

Think about how a reverse mortgage works. Which of the following is NOT one of the factors that affect the amount available in a reverse mortgage?

Yvonne tell you she would like to retire early. Which of the following is NOT true?

Which of the following is a type of defined contribution plan?

Withdrawals can be made from a 401(k) plan for all of the following reasons EXCEPT:

Mr. and Mrs. Waterson have sold their principal residence and have a tidy gain since they bought it 42 years ago. Generally, up to how much of the gain could the Watersons, as a couple filing jointly, expect to be allowed to exclude from taxable income?

Which statement is NOT correct concerning a Simplified Employee Pension plan (SEP)?

Which of the following is NOT a statutory requirement for an employer-sponsored tax-qualified retirement plan?

A monetary surplus that grows throughout retirement:

This year, Suzanne is allowed to make her first increased “catch-up” contribution to her IRA. Because of this, we know that by December 31st of this year, she will have reached age _______.

All of the following are reasons 401(k) plans are quite popular EXCEPT which one?

Who is eligible to contribute to an IRA?

Jenny is an insurance agent, and her client Marge is approaching retirement. Jenny and Marge should take all of the following steps EXCEPT which one?

Which statement is NOT true concerning universal life insurance?

Select the correct statement about a fixed annuity.

Which statement is NOT true with respect to deferred annuities?

Kevin owns an annuity that will make payouts for his life, and after his death, will refund the annuity balance to his named beneficiary if payouts have not yet equaled the amount he paid into the annuity. Which type of annuity does he own?

Which of the following is NOT one of the ways Modified Endowment Contracts (MECs) are penalized?

One of the best prospects for survivor retirement income funded with life insurance is:

Which of the following correctly states how the tax-free percentage of an annuity payment is determined?

Which of the following is NOT correct with respect to Medicare supplement policies?

Which of the following is a legal action to distribute property during which the estate is valued, fees are subtracted and taxes and debts are paid?

Which of the following is NOT true of Medicare Part D?

Your client, Nora, is interested in an investment that is both guaranteed and pays high returns. What can you recommend to meet this need?

Jim and Jen Watson have sold their principal residence and have a tidy gain since they bought it 42 years ago. Generally, up to how much of the gain could the Watsons as a couple filing jointly expect to be allowed to exclude from taxable income?

As more people live longer in retirement:

Contributions to variable annuities are measured in which of the following?

Aaron has a modest retirement fund. He should:

Annette owns a life insurance policy that requires her to share in the risk of any investment gains or losses. Which type of policy does she own?

Many people prefer to invest in mutual funds because of a feature that helps assure that a drop in the value of some investments will be offset by gains in other investments. What is this feature called?

When the need for long-term care arises:

Which of the following is NOT an insurance rating service?

When estimating retirement income from Social Security: