35. Although the corporation owns the policy and pays the premiums, death proceeds from key employee life insurance are included in the employee's estate. Use this information and Table 1 to answer questions 43-47. Margaret has life insurance through her employe equal to three times her annual salary. She is 42 years old and has an annual salary of $100,000. The annual co 36. An advantage of a DBO plan is that it will incur no income tax and no estate tax. 37. The purpose of cost sharing is to encourage employees to limit health care spending of the group term insurance is $50 for each employee. A) True B) False A) True B) False A) True B) False 38. Long-term care insurance can be offered in a cafeteria plan. A) True B) False 39. A flexible spending account can be used to pay health insurance premiums. A) True B) False 40. Employer health insurance plans cover all employees. A) True B) False 41. HMOs try to control costs by emphasizing preventative care. A) True B) False 42. Funds in an HSA can be used for a broad array of medical services, including cosmetic surgery. A) True B) False