This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: All of the following statements about the income tax treatment of individually-purchased life ... (Read 77 times)

BrownTown3

  • Hero Member
  • *****
  • Posts: 564
on: Jul 11, 2018
All of the following statements about the income tax treatment of individually-purchased life insurance are true EXCEPT
 
  A) policyowner dividends are received tax-free.
  B) the annual increase in cash value is not taxable while the policy remains in force.
  C) premiums paid for individual life insurance are a tax deductible expense.
  D) life insurance proceeds paid to a beneficiary in a lump-sum are received tax-free.

Question 2

Paul is shopping for a life insurance policy. An agent asked Paul if he would like to purchase a participating policy. What is a participating policy?
 
  A) a policy which has a cash value
  B) a policy which pays dividends
  C) a policy which invests in common stock
  D) a policy which provides for an increasing death benefit


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

zogaridan

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: B


BrownTown3

  • Member
  • Posts: 564
Reply 2 on: Jul 11, 2018
Wow, this really help

robbielu01

  • Member
  • Posts: 336
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Is there anything in life that is permanent, or is the world constantly changing? Is there anything in life that is permanent, or is the world constantly changing?
Drugs Used in the Treatment of Migraine Drugs Used in the Treatment of Migraine
How to convert verbal statements into algebraic equations (Part 2) How to convert verbal statements into algebraic equations (Part 2)
Signs of Pregnancy: Preggo Life Signs of Pregnancy: Preggo Life
Three General Protist Life Cycles Three General Protist Life Cycles
Video: Pericarditis

For a complete list of videos, visit our video library