Q#1,2

Gertrude recently passed away at age 102 after a wonderful long life. Gertrude had a term-to-100 policy with her son named as the beneficiary. The policy did not have a reduced payment schedule. Regarding Gertrude's insurance, which of the following statements is CORRECT? a) Gertrude's son would receive the cash value of the policy along with the death benefit. b) Gertrude was no longer covered by her policy as the coverage would have been terminated at age 100 . c) Only the cash value of the policy is taxable to her estate, with the death benefit passing to her son tax free. d) Gertrude's premiums would have stopped at age 100 but the coverage continued. Avril is a physician. Her husband, Jed, is a stay at home father who takes care of their 2 young daughters. As the sole income earner. Avril wants to ensure that Jed and the kids are taken care of in any situation, whether she is injured and unable to work, or in the event of her death. Recently. Avril and Jed met with a lawyer and had their wills drafted. The process required two witnesses when they signed their completed wills. Avril is also considering life insurance and would like the type of coverage that would protect her family at least until the kids are 18. In the event that Avril is injured and unable to work, she would like individual disability coverage that would provide an income to sustain the family. She wants to ensure that the coverage provides an income if she can't continue her duties as a physician. In regards to Avril's current situation, which of the following is CORRECT? a) Avril's will is mostly likely a holographic will. b) Avril's disability income would be considered taxable. c) Avril's life insurance needs would best be met with whole life. d) Avril should obtain an own occupation disability policy