FICEP Part 2 Correct Questions and Answers(RATED A)
Course
FICEP Part 2
Institution
FICEP Part 2
FICEP Part 2 Correct Questions and Answers(RATED A)
401k - ANSWER Plan A plan which allows employees to make tax-deferred contributions to retirement savings accounts. Many employers match these contributions at a specified ratio to help retirement savings build faster.
Beneficiary - ANSWER T...
FICEP Part 2 Correct Questions and Answers(RATED A)
401k - ANSWER Plan A plan which allows employees to make tax-deferred contributions to retirement savings accounts. Many employers match these contributions at a specified ratio to help retirement savings build faster.
Beneficiary - ANSWER The person or persons who are designated to receive the amount of the death benefit if the policyholder dies.
Cafeteria Plan - ANSWER Tax-qualified flexible benefit plans that are offered by participating employers. It was created by the internal Revenue Code Section 125
Capital Gains - ANSWER The difference between what you pay for an investment--
stock, your home, or another possession-- and what you earn when the item is sold
Compound interest - ANSWER The ability of savings to grow when the principal and interest are left untouched. The member earns a return both on the original principal and on all the interest that accrues over time
Death benefit - ANSWER the amount that is paid upon the death of the policy-holder
deductible - ANSWER the amount that the policy-holder must pay before insurance begins to cover expenses
Dividends - ANSWER The amount that stockholders in a company receive. Represents a portion of a company's profits
Flexible Spending Plan (FSA) - ANSWER A program offered by employers which allows
employees which allows employees to pay for eligible out-of-pocket health care and dependent care expenses with pre-tax dollars. Have a Use-it-or-lose-it provision, which means that any funds that are unused at the end of the plan year are forfeited.
Health Savings Act (HSA) - ANSWER A program offered by employers which allows employees enrolled in high-deductible health plans (HDHPs) to save for future qualified medical expenses on a tax-free basis. There is no use it or lose it provisions which means that money that is not spent for medical expenses remains in the account to accuse interest.
Indemnification - ANSWER An agreement to hold an individual or business harmless when they are engaged in a specific activity or while they are at a specific location. Individual retirement account (IRA) - ANSWER A retirement investing plan for employees which allows them to contribute before-tax funds to the ___. The money is then taxed when it is withdrawn
Insurable Interest - ANSWER The direct monetary interest that the policyholder has in the insured property. Must be sufficient to result in monetary loss should the property be
damaged or destroyed.
Liquid asset - ANSWER Property or possessions that are easily accessible and can be turned into cash
Liquidity - ANSWER The ability to convert the investment to cash
Mutual funds - ANSWER A collective investment that pools money from many investors and invest their money in stocks, bond or income funds, and money market funds.
Non-Liquid Assest - ANSWER A property or possession that cannot easily be turned into cash
Policy Rider - ANSWER An additional feature of a policy. A rider may be used to expand coverage or spell out rights or requirements for policyholders
Pooling of risk - ANSWER Combining or sharing risk among insurers or groups of insured individuals. By ______ __ ____, insurers limit their exposure when losses occur
Rate of Return - ANSWER The increase in value of your original investment, which is typically measured at specific points in time by the account holder
Return - ANSWER The gain in value on the original investment.
Risk - ANSWER The chance that you might lose your original investment. Investments with greater risk, such as in the stock market, must promise a higher rate of return
Schedule (scheduling) - ANSWER To cover property that has a special value or is not typically covered under a homeowner's policy by adding a rider to the policy
Standard of living - ANSWER A level of material comfort as measured by the goods and
services available to an individual
Tax exemptions - ANSWER An amount that may be subtracted from the taxable income, based on a listed provided by the IRS. an example is the personal exemption given to any taxpayer who cannot be claimed as a dependent by another person.
Tax Deductions - ANSWER An expense that may be subtracted from the adjusted gross
income when filing a tax return, based on definitions used by the IRS. An example is the
ability to deduct contributions to charities when filling an itemized tax return
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