True or False?

1. Life insurance provides a generally income tax-free lump sum of money for your survivors in the event of your death. The appropriate amount of insurance depends only depends on your age.

2. Premiums for permanent insurance are often higher when compared to term; however, permanent policies have the potential to build cash value that you can withdraw or borrow from if the need arises. Unpaid loans and withdrawals will reduce the death benefit and there may be tax consequences.

3. Riders that are part of your life insurance policy are free. They are marketing devices used by insurance companies.

4. Smoking increases your risk of mortality within a specified period and this is why smokers pay higher life insurance premiums.

5. The beneficiary of a life insurance policy is responsible for making the premium payments.

6. The expenses of a life insurance company have no bearing on the premiums the company charges.

7. If you open a 529 College Savings plan you are locked into investing in low yielding risk free securities.

8. If you are saving to finance a higher education, then you will have to save less to reach your goal if you save via a 529 college savings plan than if you simply buy the same investments as the plan but do it via an ordinary stock market account.

9. If you own a New York State 529 College Savings Plan, up to $10,000 is deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually.

10. You won't have to pay federal or state income taxes on the money you withdraw from your 529 College Savings Plan if the money is used to pay for qualified higher-education expenses.

11. The money invested in your 529 College Savings Plan grows deferred from federal and state income taxes.

12. The Federal Tax Cut and Jobs Act of 2017 that was signed into law on December 22, 2017 enables 529 plan owners to withdraw assets to pay for K-12 tuitions up to $10,000 per year beginning in 2018. These withdrawals will have no federal tax impact. The indivudal will not be taked on the plan earnings if used to fund K-12 education within the laws limits.