TFA Final Quiz
Insurance Maverick’s True Financial Age Final Exam Name:
Fax To:
480-393-4222
Date:
Instructions This final exam has 25 question. Please print the exam out and answer all 25 questions. Once completed, fax it back to our office at 480-393-4222. Our team will review and grade your exam. A passing score of 85% is required to become a certified True Financial Age Advisor. Your score notification will be emailed to you within 24-48 hours.
Part I: Establishing A Foundation For The Infinite Banking Concept 1)
What percentage of cars are traded in with a balance left on them? a.
75%
b.
85%
c.
95%
2)
Explain what “Don’t Steal The Peas” means: _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
3)
What is Parkinson’s Law: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part II: Understanding the Entity 4)
In What Decade was Social Security Formed? a.
1930’s
b.
1940’s
c.
1950’s
Page 1
5)
At what level should the banking function happen? __________________________________________________________________________ __________________________________________________________________________
6)
What happened to Executive Life? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part III: How To Start Building Your System 7)
Name the five methods for purchasing a car: 1. 2. 3. 4. 5.
8)
How long does it take the average business to show a profit? ___________________________
9)
Do these policies get better or worse with the passing of time? ___________________________
Part IV: Financing Your Business Equipment 10)
What does it mean to capitalize one of these policies? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Page 2
11)
Can You buy Life Insurance on someone else’s life? _______________________________
12)
What are the two requirements to buy insurance on someone else? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part V: The Infinite Capabilities of The Infinite Banking Concept 13)
Why did pension plans start? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
14)
What does it mean to push a policy close to the MEC line? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
15)
Where did the idea of retirement come from? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part VI: Advanced Training
16)
What percentage of a loan payment is paid towards principle? a.
75%
b.
90%
c.
100%
Page 3
17)
When is the interest charged? ____________________________________________________________________
18)
What does the acronym MEC stand for? _____________________________________________________________________
19)
A policy holder can only insure themselves for _____ times their annual income? a.
10
b.
25
c.
50
20)
On average, when is the “break-even” point of most policies? a.
3rd year
b.
8th year
c.
10th year
21)
What is the average “after tax” rate-of-return on most policies? a.
2-3%
b.
5-6%
c.
7-8%
22)
Under current IRS code, are return-of-premium dividends taxed? Yes______ No______
What are the 3 factors that the Life Insurance companies take into account when calculating dividends?
23) 1. 2. 3.
Page 4
24)
If you die with a policy loan outstanding, is that taxed? (please explain) _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
25)
Is buying PUA riders important (please explain)? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Page 5
Fax To:
480-393-4222
Date:
Instructions This final exam has 25 question. Please print the exam out and answer all 25 questions. Once completed, fax it back to our office at 480-393-4222. Our team will review and grade your exam. A passing score of 85% is required to become a certified True Financial Age Advisor. Your score notification will be emailed to you within 24-48 hours.
Part I: Establishing A Foundation For The Infinite Banking Concept 1)
What percentage of cars are traded in with a balance left on them? a.
75%
b.
85%
c.
95%
2)
Explain what “Don’t Steal The Peas” means: _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
3)
What is Parkinson’s Law: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part II: Understanding the Entity 4)
In What Decade was Social Security Formed? a.
1930’s
b.
1940’s
c.
1950’s
Page 1
5)
At what level should the banking function happen? __________________________________________________________________________ __________________________________________________________________________
6)
What happened to Executive Life? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part III: How To Start Building Your System 7)
Name the five methods for purchasing a car: 1. 2. 3. 4. 5.
8)
How long does it take the average business to show a profit? ___________________________
9)
Do these policies get better or worse with the passing of time? ___________________________
Part IV: Financing Your Business Equipment 10)
What does it mean to capitalize one of these policies? __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Page 2
11)
Can You buy Life Insurance on someone else’s life? _______________________________
12)
What are the two requirements to buy insurance on someone else? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part V: The Infinite Capabilities of The Infinite Banking Concept 13)
Why did pension plans start? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
14)
What does it mean to push a policy close to the MEC line? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
15)
Where did the idea of retirement come from? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Part VI: Advanced Training
16)
What percentage of a loan payment is paid towards principle? a.
75%
b.
90%
c.
100%
Page 3
17)
When is the interest charged? ____________________________________________________________________
18)
What does the acronym MEC stand for? _____________________________________________________________________
19)
A policy holder can only insure themselves for _____ times their annual income? a.
10
b.
25
c.
50
20)
On average, when is the “break-even” point of most policies? a.
3rd year
b.
8th year
c.
10th year
21)
What is the average “after tax” rate-of-return on most policies? a.
2-3%
b.
5-6%
c.
7-8%
22)
Under current IRS code, are return-of-premium dividends taxed? Yes______ No______
What are the 3 factors that the Life Insurance companies take into account when calculating dividends?
23) 1. 2. 3.
Page 4
24)
If you die with a policy loan outstanding, is that taxed? (please explain) _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
25)
Is buying PUA riders important (please explain)? _________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________
Page 5
