Insurance and Retirement Plans Quiz

Imagine you're in a classroom with Jackson, Benjamin, and Arjun. The teacher explains a group life insurance program where the employer pays all the premiums. This program would be all of the following EXCEPT:

• Contributory.

• A Conditional Contract.

• An example of third-party ownership.

• Noncontributory.

During a lively classroom discussion, Daniel asked, "Which of the following retirement plans is a special tax-favored plan for nonprofit, charitable, educational, or religious groups?"

• Tax-sheltered Annuity 403(B)

• HR10/Keogh

• 401k

• Simplified Employee Pension

Elijah and Luna are discussing key person insurance. Who do you think can designate the beneficiary of such a policy?

• Insured

• Company

• Insurer

• Family member

Hey class! William, Lily, and Nora are discussing Social Security benefits. Can you help them figure out which one of these is NOT covered?

• Survivor benefit.

• Retirement.

• Unemployment.

• Disability.

Grace and Scarlett are discussing life policies. Grace asks, "If a life policy does not pass the '7-pay test', what is it considered?"

• A Level Premium Deferred Annuity (LPDA).

• Null and void (N&V).

• A juvenile policy (JP).

• A Modified Endowment Contract (MEC).

Imagine you're in a business with your friends Abigail, Charlotte, and Sophia. You all agree that if one of you were to leave the business, the others could buy their share. What is this agreement called?

• Qualified Plan.

• Survivorship Life.

• Key Person Policy.

• Buy-Sell Agreement.

Imagine Kai and Evelyn are investors who convince people to take out new policies and name them as beneficiaries. What type of policy is this?

• Variable Life

• STOLI

• Survivorship Life

• Indexed Life

Imagine you're in a meeting with your colleagues Emma, Olivia, and Ava. The discussion is about a life insurance policy that pays out a death benefit if the insured dies within a specified term. What type of policy is this?

• Whole Life Insurance.

• Term Life Insurance.

• Universal Life Insurance.

• Variable Life Insurance.

During a seminar, Ethan and Mia are discussing retirement plans. Ethan asks, "Which of the following plans allows employees to contribute a portion of their wages to individual accounts?"

• 403(b) Plan.

• 401(k) Plan.

• Defined Benefit Plan.

• SEP IRA.

Imagine you're in a workshop with your peers Noah, James, and Lucas. The instructor explains a type of insurance that provides coverage for a specified period and pays out only if the insured event occurs during that period. What is this type of insurance called?

• Permanent Insurance.

• Term Insurance.

• Whole Life Insurance.

• Endowment Insurance.