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Home Flashcards nigeria68's Study Deck
  Flashcards by nigeria68

Question 21 

Federal Estate Taxes:
A) are also called uniform transfer taxes
B) are different from state to state
C) are levied on the fair market value of the gross estate
D) are levied on the taxable estate
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Question 22 

When a person dies, the gross estate is:
A) taxed at the rate of 50%
B) adjusted for certain gifts made during the decedent's lifetime
C) subject to the federal estate and gift tax
D) not taxed if death bed gifts are made to eligible children
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Question 23 

An insured must pay the specified interest rate to borrow his own "savings" when a loan is made on a whole life policy.
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Question 24 

One life insurance nonforfeiture option allows the insured to convert a whole life policy into term insurance.
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Question 25 

The insured is the person whose death causes the insurer to pay the claim.
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Question 26 

A convertible term policy allows the insured to convert a term policy into any other type of policy including a different type of term policy.
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Question 27 

In a limited payment policy, only a portion of the face amount is paid if death occurs in the early years.
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Question 28 

Under a group life insurance plan, in general, individuals do not have to pass an insurer's medical examination.
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Question 29 

There is never any income tax when an individual surrenders his life insurance contract.
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Question 30 

The use of life insurance for estate preservation is needed only by the very wealthy.
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