One of the disadvantages of life insurance products is that policy expenses and commissions may be greater than for comparable investments.

Michelle Fenner is the qualified plan trustee for the defined benefit plan held by Flatt Tire Company. Flatt Tire uses life insurance as part of its qualified defined contribution plan. Currently, the cash value of the life insurance policies in the plan amounts to $50,000. Ms. Fenner can borrow against the cash value of the life insurance policies held in the plan.

The owner of Windom Enterprises has asked you to identify a tax-free compensation option that could be used to avoid the “reasonableness of compensation” issue for their executives and upper-level managers. As the owner’s financial advisor, you suggest

A SIMPLE IRA can be partially funded with salary reductions by employees.

The plan is required to provide immediate vesting of benefits.

Employees can elect a salary reduction to fund their 401(k) plan either before or within a month after compensation is earned.

Valuation of car availability can be established by all of the following except

Unfunded severance pay plan assets can be accessed by creditors.

All of the following are components of designing and maintaining a health benefit plan, except

Moribund Industries, Inc., is a five-year-old company with 25 employees between 18 and 24 years of age. As a financial advisor to the company owner, which of the following approaches to health care coverage for employees would you not recommend?