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Definition
| Insurance can be used to fund a ______________ agreement. |
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Term
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Definition
| In a _________, each partner purchases insurance on the life of each of the other partners. |
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Term
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Definition
| A company with an employee who could not be replaced without considerable expense might consider buying a ____________ life insurance policy on that individual. |
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Term
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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 _________________. |
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Term
| annually renewable plan; not required; certificate of insurance |
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Definition
| Group insurance is typically written as |
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Term
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Definition
| The employee would normally have ____________ days to convert a group plan to an individual plan upon termination of employment. |
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Term
| non contributory; contributory |
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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. |
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Term
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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. |
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Term
| Qualified Retirement Plan |
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Definition
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Term
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Definition
| An IRS qualified retirement program for the self-employed is called a _____________ plan or HR-b. |
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Term
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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. |
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Term
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Definition
| 12. ___________________ are qualified plans where a portion of the company's profit is contributed to the plan and shared with employees. |
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Term
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Definition
| A 401(k) plan allows employees to defer part of their current salary into a ___________________. |
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Term
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Definition
| A ________________ is a tax-sheltered annuity only available to certain groups of employees. |
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Term
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Definition
| There is a _______% penalty for excess contributions to a traditional IRA. |
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Term
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Definition
| If you are age 50 or over, you are allowed to make an additional _____________ contribution each year. |
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Term
| tax deferred; deductible; 10; 70 1/2 |
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Definition
| Contributions to an IRA grow _________________ and can be ____________ There will be a % penalty for early non-qualified distributions. Distributions must start by age ____________ |
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Term
| tax free; 70 1/2; deductible; 10; 5 years |
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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 __________. |
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Term
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Definition
| Two ways to move money from one qualified retirement plan to another qualified retirement plan are 1) ___________ and 2) _____________. |
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Term
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Definition
| _______________________ do not meet the guidelines of participation, discrimination and vesting required of qualified plans. |
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Term
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Definition
| To qualify for Social Security benefits, a person must be either ____________ insured or _______________ insured. |
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Term
| retirement; disability; survivors |
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Definition
| Social Security offers three types of benefits: 1) ____________________ 2) _______________, and 3) _________________. |
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Term
| 65; fully insured; 80; 62 |
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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 _______ |
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Term
| Primary Insurance Amount (PIA) |
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Definition
| Social Security benefits are based on a worker's ______________ |
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Term
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Definition
| Social Security defines ________________ as the inability to engage in any substantially gainful activity. |
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Term
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Definition
| There is a one time Lump Sum Death Benefit of _____________. |
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