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:

Verbal Cues

Nonverbal signals, such as tone, pace, and volume of speech, that are used in communication to convey meaning or emphasize a message.

Prospective Memory

The aspect of memory that involves remembering to perform a planned action or recall a planned intention at a future point in time.

Procedural Memory

A type of long-term memory that enables people to perform tasks without consciously thinking about them, such as riding a bicycle.

Implicit Memory

A type of memory in which previous experiences aid in the performance of a task without conscious awareness of these previous experiences.