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 Mikhal's fund is CORRECT? If Mikhail dies today, his beneficiary will receive $42,500. 10 0 Oa) Ob) Oc) Od) 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.

Step by Step Solution

★★★★★

3.33 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Option A is correct If Mikhail dies ... 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 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...

Which one of these statements about the accrual basis of accounting is false? a. Companies record events that change their financial statements in the period in which events occur, even if cash was...

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...

I need help understanding this project... Submit the Ratio Analysis portion of the final project. For this milestone, you will be analyzing the financial performance of Starbucks using the financial...

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...

11. Miranda is concerned about the safety of her insurance and investment holdings in the event that one of the companies that she deals with becomes insolvent. She holds a 100,000 life insurance...

Resource:Ch. 9 ofFinancial Accounting CompleteExercises E9-1,E9-7, & E9-12. CompleteProblem P9-7B. Submitas a MicrosoftExcelor Word document. Click the Assignment Files tab to submit your assignment....

What's a common phrase heard from teams that are experiencing some level of groupthink? "Everyone needs to listen to the scrum master." "Nobody likes a naysayer." "We all agree, so we must be right."...

Davis Manufacturing Company had the following data for a recent year: January 1 December 31 Accounts receivable $27,000 $33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200...

A dedicated firewall and a router between the Internet and the enterprise network secures the network. A three-part firewall topology also secures the network. Please compare these two approaches and...

Required information [The following information applies to the questions displayed below.] Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On December...

k and Morty 5. S... Maps transformers icin ar... G ctis learn - Google'... Online Onion Root.. a Amazon.com: LG UI... a Ama 4 90% + Opportunity Costs Practice For each of the following situations...

Problem: Module 3 Textbook Problem 7 Learning Objective: 3 - 7 Using the straight - line method show how bonds issued at a premium affect financial statements The Square Foot Grill, Inc. issued $ 1 8...

1. What are some current issues facing Saudi Arabia? What is the climate for doing business in Saudi Arabia today? 2. Is it legal for Auger's firm to make a payment of $100,000 to help ensure this...

ABC Inc. is in the business of airframe maintenance, modification and retrofit services, avionics and aircraft interior installations, the overhaul and repair of aircraft engines, and other related...

Big Daddys BBQ, Inc. (Big Daddys), franchises restaurants. The company currently has approximately 215 franchisees operating Big Daddys restaurants in 22 states. Big Daddys standard franchise...

The disclosure rules for business combinations complicate financial analysis. Trend analysis becomes difficult because comparative financial statements are not retroactively adjusted to include data...

How do long-term, medium-term, and short-term capacity decisions differ?

What is meant by the term capacity' chunks"? What are the reactive and proactive strategies for timing capacity increases? Should essential services such as utilities use the reactive or proactive...

What is a bottleneck operation? Name two places/operations in an airport that are usually bottlenecks.