Life Insurance and Retirement Planning FINAL EXAM (LA 35128) (2022)

Retirement planning:

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

Investments at the bottom of the risk pyramid generally have:

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

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

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

IRA withdrawals attributable to contributions and earnings before 1987 are:

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:

A rider that makes it possible to receive part or all of a policy death benefit before death occurs is a/an ___________________ rider.

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?

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

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

Which of the following is NOT a reason that major dependence on a company pension is inadvisable?

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

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?

The advantages of a Simplified Employee Pension include all of the following EXCEPT:

Alecia is interested in investing in a product that requires only a modest risk in exchange for a modest return. Which of these investments would likely be a good choice for her?

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:

A defined benefit formula that rewards long service periods is called:

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 larger the daily benefit in a long-term care policy:

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

Aaron has a modest retirement fund. He should:

All of the following statements concerning employer pension benefits are correct EXCEPT which one?

A monetary surplus that grows throughout retirement:

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?

In order to keep a life insurance policy out of the estate and retain its income tax-free nature what must happen?

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

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

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

Typically, workers are fully insured as required to receive Social Security benefits when they have earned how many credits?

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)?

Roland turns age 50 in November. For this tax year, Roland can make a greater contribution to his IRA than his 47-year-old sister is allowed to make to her IRA. Roland’s increased contribution is an example of which of the following?

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

Which statement is NOT true with respect to deferred annuities?

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 _______.

Select the investment that would typically be considered at the very top of the so-called risk pyramid.

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

When the inflation rate is high, the value of tangible assets seems to:

Who is eligible to contribute to an IRA?

Jack is looking for a product that will provide guaranteed income. Among the available product, which will likely give him the greatest rate of return?

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?

Matt is a business owner. The qualified retirement plan he offers does not obligate him to make a contribution each year. Which type of plan does he offer?

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?

All of the following are advantages of replacing the spousal option with life insurance EXCEPT:

Select the untrue statement about SIMPLE IRAs.

Select the correct statement about a fixed annuity.

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

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?

When discussing Social Security, which of the following refers to the age at which an individual is entitled to receive their full monthly retirement benefit?

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

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

For what period must an investment be held in order to qualify for income taxation as a long-term capital gain?

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?

Of the following, which one has no limits on the amount of tax-deferred funds that may be contributed?

When the need for long-term care arises:

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

As more people live longer in retirement:

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

Which of the following is NOT true of Medicare SELECT policies?

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?

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

Which of the following is NOT an insurance rating service?

The establishment of SIMPLE plans is limited to:

When a person wants to leave valuable real estate to one heir, the value of the estate can be balanced with:

When estimating retirement income from Social Security: