Question: On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has 75% death and maturity guarantees. On Feb 1,

On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for

On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has 75% death and maturity guarantees. On Feb 1, 2015, when the fund value is $57,000, Mikhail utilizes the reset option. It is now June 1, 2016, and the fund value is $42,500. Which of the following statements about Mikhail's fund is CORRECT? If Mikhail dies today, his beneficiary will receive $42,500. Mikhail's contract matures on October 1, 2024. The death benefit is taxable to Mikhail's beneficiary. If Mikhail cancels the contract today, he will receive $42,500. 10 Oa) Ob) Oc) Od) l8888

Step by Step Solution

★★★★★

3.52 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

correct ans d If you cash out before the maturity date the ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Banking Questions!

Which of the following statements about the minimum variance portfolio of all risky securities are valid? (Assume short sales are allowed.) Explain. a. Its variance must be lower than those of all...

Which of the following statements about cross-bridges is false? a. They are composed of myosin. b. They bind to ATP after they detach from actin. c. They contain an ATPase. d. They split ATP before...

Which of the following statements about the security market line (SML) are true? a. The SML provides a benchmark for evaluating expected investment performance. b. The SML leads all investors to...

25 On October 1, 2014, Mikhail purchases a non-registered segregated fund contract for $55,000. The fund has 75% death and maturity guarantees. On Feb 1, 2015, when the fund value is $57,000, Mikhail...

Answer all of the following questions. Each question is equally weighted 1. Jody's financial affairs are not in good shape and she is concerned that if she should lose her job for even a short period...

answer all 1. Jody's financial affairs are not in good shape and she is concerned that if she should lose her job for even a short period of tine, her creditors would force her into bankruptcy and...

Read the following sample life insurance policies: Universal Life Whole Life Complete the worksheets for each sample policy. Universal Life Policy Worksheet FIN/428 Version 1 University of Phoenix...

Answers must be between 200-250 words only. Need for the answer to stay within the guidelines and not be copied directly from another source. Universal Life Policy Worksheet FIN/428 Version 1...

Read the following sample life insurance policy: Whole Life Complete the worksheets for each sample policy. Whole Life Policy Worksheet FIN/428 Version 1 University of Phoenix Material Sample Whole...

I need to create an executive level report on the internal management of Belk. Inc. My assignment is that I am looking to acquire Belk, What information and analysis do I need to have in this report?...

Twitter found that user's who benefited from their platform without logging into their service offered no value to the company in exchange. This is best referred to which of the following: a . OLE b...

Compute NOPAT The income statement for TJX Companies follows. THE TJX COMPANIES, INC. Consolidated Statements of Income Fiscal Year Ended ($ thousands) Net sales Cost of sales, including buying and...

Ten percent of students at ACM are nursing students. Forty percent of students at ACM are sophomores. Five percent of ACM sophomores are nursing students. Assume that ACM only has freshman and...

A client can't find an email in their inbox that is needed for their case to proceed. The client calls you and gives you their sign-on information and tells you to go ahead and find what the firm...

Please complete the following steps for your first discussion post and response. Conduct research and find two studies related to the variables used in your field of study. Your articles should focus...

I shine a laser through a grating that is has slits 1.0 x 10-6 meters apart. The result hits the wall 3 centimeters from the grating. The first order constructive interference is 2 centimeters from...

A firm uses backflush costing on a throughput costing basis. It incurs the following costs this period (the firm has NO fixed overhead costs). Direct materials costs: $15,186 Direct labor costs:...

San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...

The Williamsport Crosscutters baseball team had a player contract with Clemens (a promising young catcher) that was recorded in its accounting records at $500,000. The Reading Phillies hada player...

Audit engagement partners were comparing notes about changes in clients financial statement ratios or amounts from the prior years figures. Here is what the partners had discovered. Client 1....

Cayman Diving, Inc., needs to acquire a new dive boat. The seller will accept a noninterest- bearing note for $400,000 due in four years or $250,000 in cash. The companys incremental cost of...

Visit http://business.motorola.com/enterprisemobtlity/video/index.htm l?vid=1&localeJd=3 3, search for tire video on Montreal Transit Authority, view it, and summarize how RFID is being used.

Visit http://www.irwebcasting.coiri/N'YKLIN E/2008/en/fs_nb.htm1, watch tire video of NYK operations, and summarize the supply chain/logisties services NYK Logistics performs for its customers.

For the last item you bought (a) determine its supply drain, (b) and describe the criteria you used to select the product1'supplier.