Retirement and Other Insurance Concepts
Which of these is a cash need rather than a continuing income need in a personal needs analysis?
Answer and explanation
Answer: A. Cash needs are lump sums due at or shortly after death, such as final expenses, debts, and the mortgage. Income needs are the ongoing amounts survivors require over time.Source: NAIC Life Insurance Buyer's Guide — How much life insurance do you need: cash needs and income needs
More retirement and other insurance concepts questions
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Under a group life insurance contract, what document evidence of coverage does each individual insured employee receive?
- Under a third-party owned policy, who may take a policy loan against the accumulated cash value?
- Under an Executive Bonus Plan (IRC Section 162), how are premium payments structured and taxed for the executive?
- Under IRC Section 79, up to what amount of employer-provided group term life insurance coverage is received completely tax-free by an employee?
- Under modern tax law (IRC § 7702), why are endowments that endow prior to age 95 no longer classified or taxed as standard life insurance?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.