Which of the following statements about life income settlement options is (are) false? I. Under a joint-and-survivor life income option, payments cease at the death of the second (last surviving) annuitant. II. Under a life income with guaranteed period, a contingent beneficiary is guaranteed a minimum number of payments regardless of when the primary beneficiary dies. A) I only B) II only C) both I and II D) neither I nor II
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Which of the following statements about life income settlement options is (are) false?
I. Under a joint-and-survivor life income option, payments cease at the death of the second (last surviving) annuitant.
II. Under a life income with guaranteed period, a contingent beneficiary is guaranteed a minimum number of payments regardless of when the primary beneficiary dies.
A) I only
B) II only
C) both I and II
D) neither I nor II
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- Which of the following statements is not correct? Proceeds of life insurance policies paid to beneficiaries upon the death of the insured are excluded from gross income regardless of whether the proceeds are received as a single sum or in installments. In case of transfer for a valuable consideration by assignment or otherwise of a life insurance, endowment or annuity contract or any interest therein, only the actual value of such consideration and the amount of the premium and the sums subsequently paid by the transferee are exempt from income tax. O Marriage fees, baptismal offerings, sums paid for saying masses for the dead and other contributions received by a clergyman. evangelist or religious worker for services rendered are taxable income. O Monetization of leave credits of employees who were unable to go on leave due to exigencies of the service constitutes taxable income.Which one of the following statements identifies a purpose or characteristic of a survivorship life insurance policy? A) The premium will be more than the combined premiums on separate policies for each of the insured parties. B) A purpose is to provide estate liquidity at the death of the survivor of the insured parties. C) When the insured parties are a husband and wife, a purpose can be to allow the first spouse to die to receive the death proceeds free of transfer tax. D) The underwriting will concentrate most on the insured party that is likely to die first.If a term life insurance policy isconvertible, it can be: Question38 options: a) revised as neededby the insurer. b) transferred tothe life of another person in thefuture. c) changed to health ordisability protection. d)exchanged for cash in the future.e) changed to a comparablewhole life policy in the future.
- TRUE OR FALSE If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary less the total amount of premiums paid to the insurerOne premortem liquidity planning technique is to reduce the client's potential gross estate. Which of the following actions may reduce the client's gross estate? Placing assets in a grantor-retained annuity trust (GRAT) with a 10-year term that names the client's child as remainderman Placing assets in a revocable living trust that disperses its assets to the client's child at the client's death Placing assets in an irrevocable trust in which the client is neither a beneficiary or trustee Placing assets in an irrevocable trust in which the client as sole trustee has discretion to distribute income A) I, III, and IV B) II, III, and IV C) I and III D) II and IV(a) As a general rule, does the death of either the creditor or the debtor extinguish obligations that are transmissible to the heirs? (b) Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation, or by provision of law? (c) Will the death of the principal debtor convert, decrease or nullify the substantive right of the solidary creditor? (10%)
- life insurance proceeds paid to a beneficiary because of the insured's death is taxable. true or falseStatement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is trueA non-forfeiture option would ordinarily be selected at the time a policy owner A) Renews a term life policy B) Converts a term policy to a whole life policy C) Chooses a mode of settlement for the life proceeds D) Applies for a whole life or endowment policy
- Define each of the given and describe the different EXCLUSIONS FROM GROSS INCOME: Proceeds of life insurance policy Amount received by the insured as a return of premium Gift, bequest, or descent Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc.Which of the following statements is CORRECT regarding a spousal IRA? a- A spouse may be eligible to contribute to an IRA even if they have no income of their own. b- A spousal IRA is allowed for any filing status. c- The limitation on the amount that can be contributed to a spousal IRA is always the same as that of the working spouse. d- The taxpayer's income is not taken into consideration when establishing a spousal IRA.Which of the following life insurance proceeds is not included in the gross estate of the deceased? A. Insurance proceeds with SSS.B. Insurance proceeds where the beneficiary is a third person revocably appointed.C. Insurance proceeds under a group insurance taken out by the employee for himself as beneficiary.D. Insurance proceeds covering the life of the insured decedent where the estate of the deceased, hisexecutor or administrator is the beneficiary whether or not the insured retained the power of revocation.