Question

*Kari is a gastroenterologist who has a thriving practice. She has a sizeable net worth and income.

Buying a PLUP with more than $1 million of coverage is unnecessary.

True

False

*Ginger purchased a single-premium deferred annuity ten years ago at age 45. She used $40,000 of after-

tax funds she had accumulated over fifteen years. She decides to surrender the annuity for a lump-sum distribution of its $90,000 value. Which of the following statements is correct?

		a.  Ginger will owe income taxes on $50,000.
		b.  Ginger will owe income taxes on $90,000.
		c.  Ginger will owe income taxes and a 10% penalty on $90,000.
		d.  Ginger will owe income taxes and a 10% penalty on $50,000.

Answer 1

1. Kari is a gastroenterologist who has a thriving practice. She has a sizeable net worth and income.Buying a PLUP with more than $1 million of coverage is unnecessary.

Statement is False. Everyone should have a Personal liability umbrella policy.

2. Ginger purchased a single-premium deferred annuity ten years ago at age 45. She used $40,000 of aftertax funds she had accumulated over fifteen years. She decides to surrender the annuity for a lump-sum distribution of its $90,000 value. Which of the following statements is correct?

Ginger will owe income taxes and a 10% penalty on $50,000