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Details Title: Texas Life and Health Description: Taxes, Retirement, and Other Insurance Concepts Total Flash Cards: 26 Created: 08/06/2004 15:05:01	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Buy-Sell Definition Insurance can be used to fund a ______________ agreement. Term Cross purchase plan Definition In a _________, each partner purchases insurance on the life of each of the other partners. Term key employee Definition A company with an employee who could not be replaced without considerable expense might consider buying a ____________ life insurance policy on that individual. Term split dollar plan Definition An employee benefit plan where the employer and employee share the premium and the benefits and that is usually offered to only highly favored employees is called a _________________. Term annually renewable plan; not required; certificate of insurance Definition Group insurance is typically written as Term 31 Definition The employee would normally have ____________ days to convert a group plan to an individual plan upon termination of employment. Term non contributory; contributory Definition A group insurance plan in which the employer pays the entire premium is ___________. If the employees pay all or part of the premium, it is a _________________________ plan. Term 75; 100 Definition In a contributory plan, at least _______________% of the eligible employees must be included in the group. In a non-contributory plan, _______% of the eligible employees must be covered. Term Qualified Retirement Plan Definition 9. Term Keogh Definition An IRS qualified retirement program for the self-employed is called a _____________ plan or HR-b. Term Rule 111 Definition Under ________________ any individual who is at least 21 years of age, has worked for a self-employed person for one year or more and worked at least 1000 hours per year must be included in the Keogh plan. Term Profit sharing plans Definition 12. ___________________ are qualified plans where a portion of the company's profit is contributed to the plan and shared with employees. Term Retirement plan Definition A 401(k) plan allows employees to defer part of their current salary into a ___________________. Term 403(b) Definition A ________________ is a tax-sheltered annuity only available to certain groups of employees. Term 6 Definition There is a _______% penalty for excess contributions to a traditional IRA. Term catchup Definition If you are age 50 or over, you are allowed to make an additional _____________ contribution each year. Term tax deferred; deductible; 10; 70 1/2 Definition Contributions to an IRA grow _________________ and can be ____________ There will be a % penalty for early non-qualified distributions. Distributions must start by age ____________ Term tax free; 70 1/2; deductible; 10; 5 years Definition Differences between a Roth IRA and a Traditional IRA include: 1) Roth IRA's grow _______________, 2) contributions can continue beyond age __________, 3) contributions are not ___________,and 4) there is no __________% penalty for early distributions as long as the account has been open for __________. Term rollover; ira transfer Definition Two ways to move money from one qualified retirement plan to another qualified retirement plan are 1) ___________ and 2) _____________. Term non qualified plans Definition _______________________ do not meet the guidelines of participation, discrimination and vesting required of qualified plans. Term fully; currently Definition To qualify for Social Security benefits, a person must be either ____________ insured or _______________ insured. Term retirement; disability; survivors Definition Social Security offers three types of benefits: 1) ____________________ 2) _______________, and 3) _________________. Term 65; fully insured; 80; 62 Definition A worker becomes eligible for Social Security retirement benefits when they reach age _______ and are ____________ insured. Reduced benefits, approximately ____ %, can be payable at age _______ Term Primary Insurance Amount (PIA) Definition Social Security benefits are based on a worker's ______________ Term disability Definition Social Security defines ________________ as the inability to engage in any substantially gainful activity. Term 255 dollars Definition There is a one time Lump Sum Death Benefit of _____________.