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1.
Under IRS rules, the first ________ of group term life insurance provided as an employee benefit is tax-free to the employee.
Choose wisely. There is only one correct answer.
$50,000. Anything above that amount is taxable.
2.
Whole life insurance premium rates are more expensive than term insurance rates because _______.
Choose wisely. There is only one correct answer.
You are funding investments that will pay for the policys cash value if you terminate the policy. This will naturally cost you more.
3.
In a group term life insurance plan, the employees select the policy benefits.
Choose wisely. There is only one correct answer.
False. The employer does.
4.
An employer may set conditions on which employees receive a group term life insurance benefit, including that ________.
Choose wisely. There is only one correct answer.
Both A and B. Employers often set these requirements.
5.
When you receive insurance through a group term life insurance plan, you may have to pay for _______.
Choose wisely. There is only one correct answer.
Any of the above. There may be great variation among arrangements.