Money $mart Review Questions:
Taxes and insurance

1. Disability insurance protects you against loss of ___________________?
2. A good disability plan will have a residual benefit, have a short elimination period, be noncancelable, and guaranteed renewable. Explain how this policy would work.
3. What does a guaranteed renewal provision in health insurance protect against?
4. How is an indemnity plan different from an HMO?
5. What is the difference between term life insurance and permanent life insurance (like whole or universal)?
6. What is your annual taxable interest? Using the tax tables provided, what is your combined federal and state tax bracket?
7. If yours was a family of six, but three of the members were under 18, how many exemptions would you claim?
8. What is the difference between a tax deduction and a tax credit? Which saves you more money: a $500 deduction or a $500 credit?
9. If you owed $300 in taxes, then applied a $500 non-refundable tax credit, how much would you get back from the government?
10. What types of things can you deduct if you itemize using the Schedule A?
11. Do you qualify for the Earned Income Tax Credit? For the Child Tax Credit?

Items to return to CEI upon completion:

Answers to review questions

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