IRAs
What does IRA stand for?
What is Individual Retirement Account?
What type of retirement savings account allows employees to contribute pre-tax income for retirement?
What is a 401(k)?
Who receives the benefits of the insurance policy in the event of the policyholder's death?
Who is the beneficiary?
This type of annuity provides the potential for higher returns linked to the performance of a market index.
What is a Fixed Index Annuity?
A type of permanent life insurance that builds cash value over time. These policies place the cash value in sub-accounts that mirror a stock index, such as the S&P 500.
What is an IUL (Index Universal Life)
What is the penalty for withdrawing funds from a traditional IRA before age 59½?
What is a 10% early withdrawal penalty?
What is the term used to describe when an employer contributes to an employee's 401(k) based on the employee's own contributions?
What is employer matching?
What are benefits that provide coverage for critical illnesses or long-term care needs while the policyholder is alive?
What are living benefits?
A Fixed Index Annuity can be used to create a reliable stream of income during this life stage.
What is retirement?
A component of an IUL that accumulates over time. It can be used for various purposes, such as supplementing retirement income, paying premiums, or taking out loans.
What is cash value?
What is the maximum annual contribution limit for an IRA for individuals under the age of 50 in 2023?
What is $6,000?
What type of 401(k) account allows for after-tax contributions, with tax-free withdrawals during retirement?
What is a Roth 401(k)?
What type of life insurance provides coverage for a specified term and has no cash value?
What is term life insurance?
This rate determines how much of the market index's gain is credited to the annuity's value.
What is the participation rate?
This feature ensures that the cash value in an Index Universal Life Insurance policy does not decrease below a specified minimum, even in the event of poor market performance.
What is a guaranteed minimum interest rate? (The Floor)
What is the additional annual contribution limit for individuals aged 50 and above for an IRA in 2023?
What is $1,000?
At what age are individuals generally required to start taking RMDs from their 401(k)?
What is age 72?
What is the process of assessing an applicant's risk and determining their eligibility for insurance?
What is underwriting?
A Fixed Index Annuity can provide a guaranteed stream of income for the rest of the annuitant's life through this option.
What is a lifetime income option?
The death benefit in an Index Universal Life Insurance policy is generally received by beneficiaries without incurring this type of tax.
What is income tax?
What is the amount that can be withdrawn from a traditional IRA penalty-free by a first-time homebuyer for a down payment?
What is $10,000?
What is the maximum annual contribution limit for individuals under the age of 50 for a 401(k) in 2023?
What is $19,500?
What is the process of converting the accumulated cash value of a life insurance policy into a stream of income?
What is annuitization?
This feature of a Fixed Index Annuity ensures that the initial investment is safeguarded from market downturns.
What is principal protection?
The maximum premium payable that will qualify the policy as life insurance for federal income tax purposes.
What is guideline premium?