Carl Would Like to Purchase Life Insurance

question 52

Multiple Choice

Carl would like to purchase life insurance.He would also like to invest in a mutual fund.An agent told Carl about a form of life insurance in which Carl could select where the saving component is invested.This form of life insurance has fixed premiums and the cash value is not guaranteed.This type of life insurance is called

• A)universal life insurance.
• B)whole life insurance.
• C)variable life insurance.
• D)current assumption whole life.

Recognize the impact of AGI on the availability and amount of various tax credits including the retirement savings contributions credit.

Determine the qualifying expenses and limits for the child and dependent care credit.

Understand the implications of certain financial decisions (like taking distributions from education savings accounts) on eligibility for tax credits.

Understand and calculate the Earned Income Credit (EIC) for various scenarios.

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Definitions:

MMPI

Minnesota Multiphasic Personality Inventory, a standardized psychometric test of adult personality and psychopathology used to assess and diagnose mental disorders.

Emotionally Troubled

A state of experiencing persistent emotional distress, which may impact an individual's daily functioning and overall well-being.

Trait Theory

A psychological model that suggests personality is composed of a number of broad traits or characteristics.

Predispositions

The tendency or likelihood to behave in a certain way or to develop certain conditions based on genetic or environmental factors.