If You Have Maximized Your RRSP Contributions,have Positive Cash Flow

question 80

Multiple Choice

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?

• A)Universal life with level term insurance
• B)Term to 100
• C)Whole life
• D)Universal Life with YRT

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Definitions:

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Earnings and Profits

A measure of a corporation's ability to pay dividends to its shareholders, calculated for tax purposes.

FMV

Fair Market Value refers to the price at which property would sell on the open market between a willing buyer and a willing seller.

Dividend Income

Income received from owning shares in a company, which represents a distribution of the company's earnings.