18888 Jason, age 52. is policyholder of an exempt universal life (UL) insurance policy with a face value of $220.000, a cash surrender value (CV) of 560,000, and an adjusted cost basis (ACB) of $20,000. The life insured on the policy s Jason's son Hudson age 21. Which of the following CORRECTLY describes the outcome if Jason transfers ownership of the policy to Hudson for no consideration file. If Hudson does not pay Jason for acquiring the policy? Jason incurs a taxable policy gain of $40,000 and Hudson acquires the policy with an ACB of $20,000, Jason incurs a taxable policy gain of $40,000 and Hudson acquires the policy with an ACB of 560,000. Jason does not incur a taxable policy gain and Hudson acquires the policy with an ACB of $20,000 Jason does not incur a taxable policy gain and Hudson acquires the policy with an ACB of 560.000 10 Oleg 32. a non-smoking fitness instructor is in very good health. He has recently married and they are planning on having children. He knows he needs insurance, however, the instructor job does not pay that well. He has been promised promotions and will do better in the next few years. He wants to buy as much insurance as he can afford now and then add to it when his salary increases. He has decided on a Term 10 policy for now. Which one of the following stratepjes would allow Oleg to achieve his objective of buying affordable Insurance now with the option of increasing coverage in the future? paid up additions rider guaranteed insurability benefit rider just wait and buy more insurance later accidental death rider with double indemnity OM) On) Oo Od Hwan (40) and Nari (35) are your clients and you are assessing their current financial situation and how it impacts their Insurance needs. They are married and have two children (7 and 9). Both Hwan and Narl have Registered Retirement Savings Plans (RRSPS) worth $40,000 and 510,000 respectively. Hwan also has 520.000 in a money market fund for emergencies. They jointly own a house in Markham and have an outstanding mortgage of $235.000. Hwan drives a one year old Ford Taurus worth 540.000 which has car payments outstanding for 6 more years. Narl owns a 7 year old min, van worth $10,000 which is paid off. In the event of Hwan's death, which of the following assets would be the MOST liquid asset to sell in order to meet estate needs? the RRSPS the house Oa) Ob) Oo Od the cars the money market fund 13 After taxes, Xue clears 56.400 in income each month. Her mortgage is currently 5350.000 and her monthly mortgage payment is $2.200.Xue has decided to purchase life insurance and she asks her insurance agent Cinzia, to determine the appropriate amount accounting for inflation. Assuming an annual investment return of 4.5 and an average annual rate of inflation of 2.5%, what is the approximate amount of life insurance Xue needs using the income replacement approach? $1 million Ob) 52 million 53 million Oc Od) $4 million