Retirement and Other Life Insurance Concepts — practice questions
5% of the exam ≈8 real questions 11 free questions here
Qualified and nonqualified plans, group life, business insurance, life settlements, and tax treatment — about 8 scored questions. Small domain, heavy on tax rules that are easy points once memorized.
Where people lose points
- Death benefits are income-tax-free; cash value gains taken during life are not.
- A MEC changes lifetime distributions to LIFO with a 10% penalty before 59½ — the death benefit stays tax-free.
- Group life conversion is a 31-day window and does not require evidence of insurability.
- Key person insurance protects the business; buy-sell funds a transfer of ownership.
Drill: Retirement and Other Life Insurance Concepts
11 free questions from this domain, each with an explanation and a cited source. Timed at real exam pace.
11 questions
Pass line: 70%, same as the real exam
See the answer and explanation right after each question.