Question 1: List two advantages of policy loan. (12 points) Rubric: 12 points in total. 6...
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Question 1: List two advantages of policy loan. (12 points) Rubric: 12 points in total. 6 points for each advantages corrected listed and explained, in which 3 points for listing, and 3 points for explanation. Question 2: Please explain why interest is charged against policy loan when cash value belongs to the policyowner? (13 points) Rubric: 13 points for this question. Question 3: Illustrate how Keogh Plans work for self-employed individuals in terms of defined contribution plan and define benefit plan. (12 points) Rubric: 12 points for this question. 6 points for the illustration of defined contribution plan, 6 points for the illustration of defined benefit plan. Question 4: Tom, age 42, has a life insurance policy at face amount of $1,000,000. His risk category is standard plus, with annual premium of $1,000. If he were to purchase a single-premium policy, the premium would be $10,000. The required % of the corridor test is 250%. Please illustrate the two scenarios where his contract will be qualified as life insurance. You'll need to specify the exact amount for the qualification. (13 points) Question 1: List two advantages of policy loan. (12 points) Rubric: 12 points in total. 6 points for each advantages corrected listed and explained, in which 3 points for listing, and 3 points for explanation. Question 2: Please explain why interest is charged against policy loan when cash value belongs to the policyowner? (13 points) Rubric: 13 points for this question. Question 3: Illustrate how Keogh Plans work for self-employed individuals in terms of defined contribution plan and define benefit plan. (12 points) Rubric: 12 points for this question. 6 points for the illustration of defined contribution plan, 6 points for the illustration of defined benefit plan. Question 4: Tom, age 42, has a life insurance policy at face amount of $1,000,000. His risk category is standard plus, with annual premium of $1,000. If he were to purchase a single-premium policy, the premium would be $10,000. The required % of the corridor test is 250%. Please illustrate the two scenarios where his contract will be qualified as life insurance. You'll need to specify the exact amount for the qualification. (13 points)
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Question 1 Policy Loan Advantages Here are two advantages of policy loans Access to Cash A policy loan allows you to borrow money against the cash value of your policy This can be helpful for emergenc... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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