AAMS Exam fully solved & updated (latest
version verified for accuracy) (Questions +
Answers) Solved 100% Correct!!
Save
Terms in this set (299)
Which of these statements is most Total life insurance requirements may decrease as
accurate with respect to the life an individual approaches retirement
insurance needs of the typical
family?
Assume a client has $30,000 in a $8,000
money market fund, $2,000 in a
checking account, a mortgage loan
of $110,000 (not to be paid off, as it
will be transferred to the spouse),
an auto loan of $20,000, and credit
card balances of $5,000. Assume
that if he died, postmortem
expenses would be $15,000. What
would be the cash requirements for
this client?
,An investment professional is $615,000
assessing the life insurance needs
of the Robinson family. Mr.
Robinson has determined that the
family's immediate cash flow
requirements in the event of his
death are $65,000. The amount
needed to meet all future funding
requirements (net of Mrs.
Robinson's income and Social
Security and pension benefits) is
estimated to be $550,000. The
family owns a home in which their
equity interest is $200,000. Based
upon these figures, the investment
professional would recommend life
insurance with a face amount of:
With regard to financial planning, disability income and long-term care insurance
many individuals and households
overlook the potential needs for:
Mrs. Bartlett purchased a life term life insurance policy
insurance policy that will pay
$100,000 to her beneficiary should
she die at any time during the next
year. The policy guarantees the
right to renew every year for the
next five years, and builds no cash
value. Mrs. Bartlett has purchased a
Which types of clients would be Clients who prefer the discipline of regular,
identified as the best prospect for periodic investments
cash value life insurance?
, With respect to cash value life The amount of the cash value that exceeds the
policies, what part of the policy investment in the contract
value, if any, is subject to income
taxation when the policy is
surrendered?
Brenda Bradford is the owner of a Brenda, the policy owner
whole life policy on her husband,
Rolf. Their daughter, Vera, is named
in the policy as the contingent
beneficiary. In issuing the policy, the
insurance company has asked that a
settlement option be selected.
Which one of the following
individuals is currently empowered
to make the selection?
Your client, Ann, age 50, received a Single-premium deferred annuity
$300,000 inheritance from her late
parents' estate. She would like to
invest this money in a safe place,
where it will grow in value until she
takes early retirement at age 60.
Which one of the following would
be the most logical choice for Ann?
Ten years ago, June, age 58, Can avoid the tax and the penalty by making a
purchased a deferred annuity with a section 1035 exchange
fixed rate of return of 4%. She
believes that she could do better if
she had a variable annuity with
performance tied to the stock
market. June has held on to this
fixed-rate annuity out of fear that
surrendering it would trigger a
taxable event and a possible
penalty. You should explain that
she:
version verified for accuracy) (Questions +
Answers) Solved 100% Correct!!
Save
Terms in this set (299)
Which of these statements is most Total life insurance requirements may decrease as
accurate with respect to the life an individual approaches retirement
insurance needs of the typical
family?
Assume a client has $30,000 in a $8,000
money market fund, $2,000 in a
checking account, a mortgage loan
of $110,000 (not to be paid off, as it
will be transferred to the spouse),
an auto loan of $20,000, and credit
card balances of $5,000. Assume
that if he died, postmortem
expenses would be $15,000. What
would be the cash requirements for
this client?
,An investment professional is $615,000
assessing the life insurance needs
of the Robinson family. Mr.
Robinson has determined that the
family's immediate cash flow
requirements in the event of his
death are $65,000. The amount
needed to meet all future funding
requirements (net of Mrs.
Robinson's income and Social
Security and pension benefits) is
estimated to be $550,000. The
family owns a home in which their
equity interest is $200,000. Based
upon these figures, the investment
professional would recommend life
insurance with a face amount of:
With regard to financial planning, disability income and long-term care insurance
many individuals and households
overlook the potential needs for:
Mrs. Bartlett purchased a life term life insurance policy
insurance policy that will pay
$100,000 to her beneficiary should
she die at any time during the next
year. The policy guarantees the
right to renew every year for the
next five years, and builds no cash
value. Mrs. Bartlett has purchased a
Which types of clients would be Clients who prefer the discipline of regular,
identified as the best prospect for periodic investments
cash value life insurance?
, With respect to cash value life The amount of the cash value that exceeds the
policies, what part of the policy investment in the contract
value, if any, is subject to income
taxation when the policy is
surrendered?
Brenda Bradford is the owner of a Brenda, the policy owner
whole life policy on her husband,
Rolf. Their daughter, Vera, is named
in the policy as the contingent
beneficiary. In issuing the policy, the
insurance company has asked that a
settlement option be selected.
Which one of the following
individuals is currently empowered
to make the selection?
Your client, Ann, age 50, received a Single-premium deferred annuity
$300,000 inheritance from her late
parents' estate. She would like to
invest this money in a safe place,
where it will grow in value until she
takes early retirement at age 60.
Which one of the following would
be the most logical choice for Ann?
Ten years ago, June, age 58, Can avoid the tax and the penalty by making a
purchased a deferred annuity with a section 1035 exchange
fixed rate of return of 4%. She
believes that she could do better if
she had a variable annuity with
performance tied to the stock
market. June has held on to this
fixed-rate annuity out of fear that
surrendering it would trigger a
taxable event and a possible
penalty. You should explain that
she:
