A Life Insurance Policy Can Be Structured So That the Death

question 47

Multiple Choice

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary rather than being considered part of your estate, which means that:

• A) the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes.
• B) the cash benefits from your life insurance policy cannot be claimed by creditors.
• C) the life insurance proceeds are invested for the beneficiary.
• D) the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes.
• E) the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably.

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Definitions:

Volume Overhead Variances

The difference between the budgeted overhead costs based on expected volume and the actual overhead costs incurred.

Controllable Variance

The difference between actual and budgeted performance that can be directly managed or controlled by responsible managers.

Actual Direct Labor Hours

The actual amount of labor time spent on producing goods, tracked to assess efficiency and productivity.

Management By Exception

A management strategy where managers intervene only when performance deviates significantly from standards, allowing them to focus on significant issues.