Funeral Preneed and Death Benefit - BAO Board
Exams UPDATED ACTUAL Questions And
Correct Answers
Terms in this set (56)
What are two common funding - Trust
vehicles? - Insurance
What are four different types of - Individual accounts
trust? - GIC term accounts
- Fraternal organizations
- Pooled funds
What are two types of insurance? - Group annuities (insured and uninsured)
- Final expense policies (direct to consumer
agents)
What are two facts about individual - Often at credit unions or banks
accounts? - Typically low interest
What is a GIC? A term investment at a bank, credit union or
investment company. They receive posted interest
rate which is stated at the beginning of the term
investment
How are you protected if you - Protected by CDIC (banks) or DICO (credit
deposit money and how much is unions)
protected? - Up to $100,000
, How do fraternal organizations - Offer individual certificates
work as a trust? - Interest rates fluctuate, usually change every 1 or
2 years
What can a funeral home receive on Marketing allowance (commission)
the original investment amount?
Are trust products transferable? Yes
What happens to excessive funds in Funds must be returned to state and anything over
trust accounts? $50 is taxable
What happens if you cancel a trust? You get back 100% of the funds plus interest, minus
10% up to $350
Are there cancellation fees for Some smaller banks may charge a fee if it has been
trusts? cancelled before maturity
What payment type is a trust? Flexible - not fixed
What happens if someone dies Family owes the difference at-need
before the payment plan is
complete for a trust or annunity?
How do pooled trusts work? - Requires a third party trustee who may charge
fees
- Individual account tracking still required
How are trustee fees paid out for Paid out of income
pooled trust?
Exams UPDATED ACTUAL Questions And
Correct Answers
Terms in this set (56)
What are two common funding - Trust
vehicles? - Insurance
What are four different types of - Individual accounts
trust? - GIC term accounts
- Fraternal organizations
- Pooled funds
What are two types of insurance? - Group annuities (insured and uninsured)
- Final expense policies (direct to consumer
agents)
What are two facts about individual - Often at credit unions or banks
accounts? - Typically low interest
What is a GIC? A term investment at a bank, credit union or
investment company. They receive posted interest
rate which is stated at the beginning of the term
investment
How are you protected if you - Protected by CDIC (banks) or DICO (credit
deposit money and how much is unions)
protected? - Up to $100,000
, How do fraternal organizations - Offer individual certificates
work as a trust? - Interest rates fluctuate, usually change every 1 or
2 years
What can a funeral home receive on Marketing allowance (commission)
the original investment amount?
Are trust products transferable? Yes
What happens to excessive funds in Funds must be returned to state and anything over
trust accounts? $50 is taxable
What happens if you cancel a trust? You get back 100% of the funds plus interest, minus
10% up to $350
Are there cancellation fees for Some smaller banks may charge a fee if it has been
trusts? cancelled before maturity
What payment type is a trust? Flexible - not fixed
What happens if someone dies Family owes the difference at-need
before the payment plan is
complete for a trust or annunity?
How do pooled trusts work? - Requires a third party trustee who may charge
fees
- Individual account tracking still required
How are trustee fees paid out for Paid out of income
pooled trust?
