1 Rachel is applying for a participating whole life insurance policy and is yet to choose a divided payment option. She would like to know about the accumulation option. Which of the following information about the accumulation option is FALSE? eFhHRIhxROZCNVINSZFWWnViblAwQT09 a. O Rachel will be required to make minimum yearly withdrawals from the accumulation account.

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The Jeffersons are considering contributing to their traditional IRAs this year. They have also heard an expert on PBS say that Roth IRAs may be appropriate for them. They want to know: Should they contribute to a traditional IRA, a Roth IRA, both types of IRA accounts, or neither IRA account? (If you select neither IRA account, you must recommend an alternative retirement account to start saving for retirement.) How much can they contribute to an IRA this year? Explain your choice addressing the major tax advantages of the contribution strategy that is most appropriate. What tax rules should the client be aware of regarding contributions and distributions? Cover how contributions, earnings and withdrawals are taxed at various ages and situations important to the Jeffersons.

9. Define out of pocket maximum. a. A flat-rate fee you must pay when receiving any kind of health care service. b. The maximum amount of money your insurance will cover of a certain health care service. c. The maximum amount you will have to pay out of pocket in one year for the benefits your insurance covers. d. The maximum amount of money the insured party will pay toward prescription medications.

Whole Life insurance is often called ordinary life, or cash-value life insurance. This type of life insurance also gives you three guarantees. Select those three. The promise that your premium payments will decrease as you progress into your policy A guaranteed minimum rate of return on your cash value account A guaranteed death benefit amount The promise that your premium payments will not go up

5. Understanding term life insurance Deborah is a 25-year-old female with limited financial resources and a four-year-old son. Ideally, she would like to purchase permanent insurance coverage, but her primary concern is making sure her son will be taken care of financially if she dies before he graduates from college. Given her current financial situation, she is interested in a term life insurance policy that will last 20 years. Deborah goes to an insurance broker to purchase a policy and is shown the following two rate tables to help her choose between annual renewable and level premium term life insurance. Yearly Rates on Term Life Insurance Policies   Annual Renewable Term Life Rates     Policy Year Age 25 Age 40 Age 60 1 $119 $139 $252 5 $147 $219 $562 15 $176 $507 $1,313 20 $259 $1,054 $2,989 Total Cost 5 Years: $625 $897 $2,100 Total Cost 15 Years: $2,135 $6,205 $11,987 Total Cost 20 Years: $3,777 $8,287 $22,346     Level Premium…

You have a gross annual income of $62,500. Use the multiple of income method to determine the minimum amount of life insurance you should carry. Answer is complete but not entirely correct. Minimum insurance need $ 437,500 x

(Table: Insurance Claims) Five people vary in health status. Each person knows his or her own health status and expected medical bills, which are given in the table. These people are considering buying health insurance. Assume that each person is equally likely to file a claim. Annual Expected Health Insurance Claim Person Darwin Edgar Fran Hilda Jared $30,000 20,000 10.000 8,000 2,000 Suppose that the insurance company does not know the health status of any one person but does know the expected claims of the group as a whole. If the insurance company sets the premium based on the average expected claims of these five people, then people would be willing to pay the premium. O five O four O three O two

Taylor Jones has a Insurance policy that returns every cent she pays in premiums if she outlives the term of the policy. She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it. What type of term life insurance does Taylor have?

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $50,000 today or receive payments of $641 a month for 10 years. You can earn 6.50% on your money. What option should you take and why?