The current Gross Interest Rate credited to a Universal Life Insurance Policy today?
What is 3.85%?
100
This number represents the maximum premium allowed to be paid in a given year in the early years of a life insurance policy. Anything more will make the policy a Modified Endowment Contract.
What is the Initial Seven-Pay Premium?
100
Commonly known as an ILIT
What is an Irrevocable Life Insurance Trust?
100
From taking an application to the policy being issued, this is the time frame that will correctly set client expectations.
What is 60 to 90 days?
200
Pays 1% of the face amount to a non-profit at the death of the insured.
What is the Charitable Benefit Rider?
200
The three tax benefits available through a non-MEC life insurance policy.
What are
1) Tax-deferred growth
2) Income Tax-Free Death Benefit, and
3) Tax-free withdrawals/loans?
200
The different Level Term Life Insurance time periods offered.
What are 10, 15, 20 and 30?
200
Book that provides information on rate classifications, height/weight ranges and medical conditions that you can look at before requesting an illustration.
What is the Field Underwriting Guide?
200
The two types of underwriting required to approve a policy.
What are
1) Financial Underwriting and
2) Medical Underwriting?
300
The policy's interest rate is credited on a _________ basis, while the cost-of-insurance is deducted on a ________________ basis.
What are Daily and Monthly?
300
The tax benefit(s) lost when a life insurance policy becomes a MEC.
What is tax Free Withdrawals/Loans?
300
The New York State Insurance Premium Tax rate.
What is 0.7%?
300
Location of life insurance on the Asset Location Worksheet (ALW).
What is Tax Never?
300
The team at the Life Insurance Company that helps the ISD and the WMA with more complex cases that require additional support with policy design.
What is The Advanced Markets Team (a team of attorneys with a specialty in life insurance law)?
400
The two potential policy changes that are illustrated in the "Guaranteed" Columns of Table II in the illustration.
What are
1) Interest rate is decreased to the guaranteed 3% floor, and 2) Cost of insurance is increased to the state's max?
400
The IRS applies a 10% income tax penalty on earnings withdrawn from a MEC prior to this age.
What is 59 1/2?
400
The para-medical exam is "good" for this length of time before it has to be re-done.
What is 6 months?
400
These 3 parties to a life insurance contract that are often referred to as the "Holy Trinity".
Who are the Policy's Owner(s), Insured(s) and Beneficiary(ies)?
400
This individual at the Life Insurance Company is responsible for gathering all records and requirements for the underwriter. They communicate regularly with clients to obtain additional information throughout the underwriting process.
Who is the Case Manager?
500
Specific page number on the Life Insurance Illustration where you can find the Internal Rate of Return in year 1.
What is Page 1 of 3?
500
This occurs when a client inadvertently makes a premium payment that exceeds the seven-pay premium.
What is The premium is not processed. The client receives a letter asking them to first acknowledge that they are aware that the policy will become a MEC. No client can accidentally create a MEC without their written or verbal consent?
500
A Wise Man once said:
What is a Fair Rate of ________ on your ______ money?
What is a Fair Rate of INTEREST on your SAFE money?
500
It's the primary reason why the underwriting process gets delayed and is typically out of our control.