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A henry probably does not need life insurance

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A.Henry probably does not need life insurance coverage, becauseLola and the children could survive on her income aloneB.Lola probably does not need life insurance coverage, becauseher life is insured under her group coverage and under the keyperson insurance policyC.Both Henry and Lola should probably have life insurancecoverage beyond what they currently haveD.None of the above153.Monica is thinking through her estate plan, for which she intends toleave all her assets to her 22-year-old daughter. However, she isconcerned about her ability to handle the money without an astuteinsurance insurance agent. Monica does not want to create a formalstructure to address this before her death. After reviewing Monica’sintentions, which of the following approaches wouldbemostappropriate?
A.Establish an inter vivos trust today with her daughter asbeneficiary and Monica as trusteeB.Leave the money directly to her daughter but include a letter ofdirection that puts Monica’s wishes in writing to her daughterC.Establish a testamentary trust in her Will with her daughter asbeneficiary and a trust company as trusteeD.Establish a testamentary trust with her daughter as beneficiaryand trustee154.Rocky bought a $400,000 whole life insurance policy in 2005. Hepaid premiums of $5,000 annually for 10 years, and the net cost ofpure insurance amounted to $22,000. What would be the adjustedcost base (ACB) of Rocky’s policy?A.$22,000B.$28,000C.$50,000D.$72,000155.Brent is the sole provider for himself and his wife Betsy. They areboth 35-years-old and in the event that something happens to Brent,he wants to ensure that Betsy has a gross income of $50,000 untilshe is 90-years-old and that all debts including the mortgage wouldbe paid off at the time of his death. Over Betsy’s lifetime, Brentexpects inflation to be 3% and the rate of return will be 7% onBetsy’s investments. Currently, they have $350,000 of debtoutstanding, and Brent has $150,000 in life insurance through agroup plan at work. How much additional life insurance does Brentneed to purchase for Betsy?A.$1,129,125B.$1,172,975C.$1,372,975
D.$1,479,125156.Which statement istrueregarding the company’s business-ownedinsurance?A.The premiums are generally not tax-deductible and are paidwith after-tax dollarsB.Older or unhealthier associates may be required to pay a biggershare of the cost of coverageC.It can be hard to obtain proof that premiums are actually beingpaidD.None of the above157.Gino and his life agent Cyrus are discussing life insurance needsanalysis. Cyrus mentions the importance of taking into account theinflation-adjusted rate of return. Gino is confused, so Cyrus attemptsto explain with the following scenario. Assume that Gino earns areturn of 6% on an investment portfolio and that the inflation rate is2%. What will be his inflation-adjusted rate of return?

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