Which of the following are correct tax-free exchanges?   Life insurance for life insurance Life insurance for an annuity An annuity for an annuity An annuity for a life insurance policy     1 only 1, 2 1, 2, 3 1, 2, 3, 4

Q: Define 401(k) retirement plan

A: A 401(k) plan refers to a tax qualified defined contribution pension (or retirement) account.

Q: A taxpayer who purchase a series EE US savings bond must report the interest income increase in…

A: The taxpayer can report income from the savings bond either every year or at the time of maturity,…

Q: 1 Although both immediate and variable annuities can provide lifetime income to annuitants, they…

A: Immediate annuity- Under this, an annuitant  or annuity owner pay  a lump sum amount  to purchase an…

Q: Which of the following statements regarding annuities is FALSE? (1) A difference between an annuity…

A: (I) Unlike perpetuity, an annuity will terminate upon certain payments, which are decided earlier.…

Q: Consider the mortgage term PITI. What do the last two letters stand for? title insurance taxable…

A: Many mortgage lenders estimate PITI for the insured person before they decide whether he qualifies…

Q: Life insurance premiums shall be reported as a deductible expense for financial reporting purposes…

A: The outlay which is an ordinary outlay and helps in the normal revenue generation of the business is…

Q: lowing are examples of retirement plans EXC O 401(k) O 403(b) O Traditional IRA O Roth IRAS O…

A: There are many types of retirement plans depending on amount of deposit ,period of deposit and…

Q: Policyholder dividends from a whole life insurance policy are generally tax exempt. In which of the…

A: The correct answer is: (A) The dividend is from a MEC and is received in cash. Policyholder…

Q: The future value of an ordinary annuity is less than that of an annuity due

A: The Statement is True . The future value of an ordinary annuity is less than that of an annuity…

Q: e insurance company's compensation

A: Insurance compensation is the amount received by the insured from the insurance company for the…

Q: Which of the following earns a fixed rate of return? Whole life insurance. Term-life insurance.…

A: There are two main types of life insurance:- Term life insurance and whole life insurance. Term life…

Q: What is the difference between life insurance and annuity?

A: Meaning:Life insurance is a cover on financial loss, and it is a contract between insurer and a…

Q: All of the following are basic factors in calculating the income payable through an annuity EXCEPT

A: The correct answer is: (A) Gender of the annuitant. This is because annuities are not typically…

Q: 11. Which of the following is NOT the features of investment-linked insurance? O A. The insured can…

A: A life insurance plan that combines investment and protection is referred to as an investment-linked…

Q: Why is it that in making same paymentsfor both ordinary annuity & that of annuity due, at the end we…

A: Annuities are the financial contracts that provide a steady income stream, often to retirees. The…

Q: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø…

A: Deduction in respect of life insurance (80C) The provisions of sub-section (2) shall apply only to…

Q: 4. Mr. Bueno would like to know the present value of his savings with P 4,500.00 deposit every 6…

A: 4) Semiannual saving (S) = P 4500 n = 10 years = 20 payments r = 7% per annum = 3.5% semiannually

Q: Q7-8. Is it possible to convert a present value of an ordinary annuity table to the present value of…

A: Let r = Interest rate Periodic payment = P Duration = n

Q: Deductibles are not used in which of the following type of insurance?

A: Deductibles in insurance: The deductibles is an expense the insured have to pay in before the time…

Q: Series EE bonds are:   Question 5 options:   corporate bonds that produce income that is taxed the…

A: The Series EE Bond is commonly called a "Patriot Bond". EE Bond is considered a non-marketable,…

Q: How do insurance companies determine how much you should pay for your insurance coverage?

A: The amount of money paid for an insurance policy is termed as insurance premium. The premium is paid…

Q: Which of the statements is correct? a)FV of annuity due is greater than FV of regular annuity. b)FV…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: 2. What are the major factors involved in determining how much life insurance coverage a person or…

A: Life insurance is a contract in which an insurance company commits to pay a set sum following the…

Q: Question 17 The payment amount for Perpetuity has the formula: A = Pi A True False

A: Time value of money (TVM) is a concept which states that the worth of one unit of currency in…

Q: Social security payments are a form of an annuity payment which is included in your gross estate as…

A: Annuity gross estate refers to the annuity value and payment that is received by the beneficiary for…

Q: ne difference between an rdinary annuity and a annuity due is: O A ordinary annuity is when payments…

A: Annuity is the uniform annual payments that are made at uniformly over the period of time of annuity…

Q: Transfer payments include i. social security benefits ii. medicare and medicaid benefits iii.…

A: Transfer payment is the payment by the government for which nothing has not been received in return.…

Q: The difference between an ordinary annuity and an annuity due is that each of the payments of the…

A: The two common types of annuities are annuity due and ordinary annuity Ordinary annuity is an…

Q: The Present Value of an Ordinary Annuity is identical to the Present Value of an Annuity Due. This…

A: The present value is the value of cash flow stream or the fixed lump sum amount at time 0 or the…

Q: 13. Life insurance is necessary because it can provide (among other things) the benefits. Which of…

A: A policyholder must pay a single payment up front or regular premiums over time in order for their…

Q: 2. Explanation of different types of retirement benefits and category of funds

A: Introduction: Retirement benefits are those benefits which are provided to old aged people once they…

Q: ter the potential retirement income benefit. efined Contribution Pension Plan (DCPP) egistered…

A: Defined Pension Plan - An employer-promised defined/predetermined pension payment plan is referred…

Q: Which principles ensures that an insured does not profit by insuring with multiple insurers?

A: The Principles of Contribution ensures that an insurance that an insured does not profit by insuring…

Q: Which of the following is the correct calculation of insurance premium? a. (Premium/1,000) x table…

A: The insurance companies provide insurance facilities for different purposes such as life insurance,…

Q: The Federal Insurance Contributions Act (FICA) created the Social Security tax to fund the old-age,…

A: In US, it is mandatory to deduct the Social Security Tax from the salary or the paychecks of the…

Q: Q7-6. Is it possible to convert the future value of an ordinary annuity table to the future value of…

A: Future Value of Ordinary Annuity The formula to calculate Future Value of an Ordinary Annuity is:…

Q: Why is it necessary for you to contribute to a pension?

A: Note:“Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: If the Company is required to make equal monthly payments into a sinking fund that will be used to…

A: A sinking fund is a financial mechanism established by an organization or entity to set aside money…