Explain What the Indirect Plan Is and Discuss Reasons for Its

question 28

Essay

Explain what the indirect plan is and discuss reasons for its choice,with reference to cultural dimensions of at least two cultures.

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Definitions:

Premium

The amount paid for an insurance policy, often on a monthly, quarterly, or annual basis.

Beneficiaries

Individuals or entities entitled to receive benefits or proceeds from an insurance policy, will, or trust.

Roth IRA

Deposits are taxable, but when the money is withdrawn after having been there for at least 5 years and the saver is at least 59 1/2 years old, the money and the income earned is tax-exempt, or free from all taxes.

Tax-Deferred

Taxes are paid at the time the money is withdrawn from the account, not when the money is actually earned.