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Author Question: The gross premium for life insurance is equal to A) the present value of the future death claim ... (Read 26 times)

cagreen833

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on: Jul 11, 2018
The gross premium for life insurance is equal to
 
  A) the present value of the future death claim plus an expense loading.
  B) the present value of the future death claim less the sum of the premiums paid when death occurs.
  C) the present value of the future death claim less the present value of the expected dividends.
  D) the net premium less the expense loading.

Question 2

All of the following statements about the tax treatment of life insurance purchased by an individual are true EXCEPT
 
  A) The annual increase in the cash value is currently taxable.
  B) Premium payments are not tax deductible.
  C) Death benefits received in a lump sum are not taxable income.
  D) Policyowner dividends are not considered taxable income.


mcabuhat

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Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: A


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