Secondary guarantee no-lapse policies will remain in force and the death benefits will remain level, even if the cash-value accounts fall to zero as long as the policyowners have paid the specified required premiums in a timely fashion.

Variable annuities are taxed in the same manner as mutual funds.

If the annuitant dies after annuity benefit payments have started under a “pure life annuity” settlement option:

Changes to a No-Lapse Universal Life (NLUL) policy, such as loans, partial withdrawals, changes in the death benefit, changes in scheduled premiums, may terminate the guarantee.

The party who applies for and owns the policy contract is the:

Term policies can generally provide the lifetime guarantees of a No-Lapse Universal Life (NLUL) product.

ATRA increased estate tax rates and reduced the estate, gift, and GST exemptions.

Why are insurance companies often able to credit higher amounts on Indexed Universal Life (IUL) Products than on Index Annuity (IA) products?

A life insurance policy is owned in the insured’s qualified retirement plan. A total of $50,000 was paid in premiums and at the insured’s death it had a cash value of $100,000 and a death benefit of $250,000. Assume that the insured was annually taxed on the reportable economic benefit cost (REB) for the amount of death benefit the insured could designate a beneficiary for and that upon the insured’s death $100,000 is paid to the plan and $150,000 is paid to the insured’s named beneficiary. How much of the death benefit will be subject to income tax?

Which of the following is a disadvantage of a current-assumption whole life policy?