Exam (elaborations)
CRPC Damage Control Mod_ 4, 5, 6.
- Module
- CRPC Sample Tests
- Institution
- CRPC Sample Tests
CRPC Damage Control Mod_ 4, 5, 6.
[Show more]
Seller
Follow
Content preview
CRPC Damage Control Mod: 4, 5, 6Whole life policies feature
-level premiums and a flexible death benefit.
-flexible premiums and a level death benefit.
-level premiums and a level death benefit for a specific time period.
-level premiums and a level death benefit for the insured's entire life. - ANS-level
premiums and a level death benefit for the insured's entire life.
Whole life policies are designed to provide for level premiums, a guaranteed death
benefit no matter when the insured dies, and guaranteed cash value.
Flexibility is the key word that describes
whole life.
variable life.
term life.
universal life. - ANS-universal life.
The key word for term life is low-cost (relative to other options). The key word for whole
life is guaranteed. For variable life, the key term is variable. Universal life offers a
significant degree of flexibility.
Sam, age 62, retired two years ago and is currently relying on his Social Security
retirement benefit for income. Faced with a tight budget, Sam is considering going back
to work. Which one of the following would not be true if he returned to work?
-He may be eligible for employer-paid health care coverage.
-Regardless of the income he earns, he will continue to receive his full Social Security
benefit.
-When he fully retires he will have fewer years of retirement to finance.
,-He could establish and fund an IRA with his earned income. - ANS-Regardless of the
income he earns, he will continue to receive his full Social Security benefit.
Old-age benefits of Social Security recipients may be reduced if the client earns income
from wages and salary during retirement prior to Social Security's full retirement age.
Benefits paid to persons in the years prior to attaining full retirement age are reduced by
$1 for every $2 earned over the limit.
Earned income, as defined by the Internal Revenue Code, includes all of the following
except
alimony.
salary.
bonuses.
Social Security income. - ANS-Social Security income.
Earned income only includes salary, fees, bonuses, commissions, and taxable alimony.
An individual is not considered an "active participant" in an employer-sponsored defined
contribution plan if they receive only which one of the following annual additions?
interest
employee contributions
forfeitures - ANS-interest
Only employee and employer contributions and forfeitures result in active participant
status. Investment earnings credited to an individual's account do not.
Jane Pascheon has contributed $1,000 each year to a Roth IRA, beginning with an
initial payment of $500 on December 31, 2014. At which date will she meet the
requirement that qualifies her for tax-free distributions of gains in her account? -
ANS-January 1, 2019
A Roth IRA owner is required to hold the account for a minimum of five years to qualify
for tax-free distributions, starting on January 1st of the year the first contribution is
made. The clock started on January 1, 2014, so five years will have elapsed on January
1, 2019. In addition, the owner must be at least age 59½.
All of the following are true regarding Roth 401(k)s except
, if an individual starts contributing to a Roth 401(k) and has an existing Roth IRA, each
account will have its own separate five-year clock.
required minimum distributions apply.
the regular deferral limit is $19,000 in 2019.
a $1,000 catch-up provision is available to individuals age 50 and older. - ANS-a $1,000
catch-up provision is available to individuals age 50 and older.
In 2019, participants age 50 and older can contribute an additional $6,000 as a catch-up
provision; this is in addition to the regular deferral limit of $19,000.
Which one of the following statements applies to fixed annuities?
Their objective is to outpace inflation.
The premiums are invested in the company's general account.
A rider can be added so that the value at death is guaranteed to be at least equal to the
amount of the premium investment.
Premium contributions purchase units of separate accounts. - ANS-The premiums are
invested in the company's general account.
The premiums in a fixed annuity are invested in the company's general account. The
other statements are applicable to variable annuities.
Sara is ready to annuitize her contract. She would like to receive the largest lifetime
monthly income possible. Which one of the following income options should she select?
single life annuity
fixed period annuity
life income with refund
pension maximization - ANS-single life annuity
A single-life annuity will provide the largest lifetime monthly income. Pension
maximization is a strategy using a pure life annuity, but is not an income option per se.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller denicetho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.16. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76449 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now