« previous next »

Author Question: The gross premium for life insurance is equal to A) the present value of the future death claim ... (Read 61 times)

cagreen833

  • Hero Member
  • *****
  • Posts: 544
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

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Cell division in common life cycles Cell division in common life cycles
Everyday situations sometimes present opportunities for children to build information processing ... Everyday situations sometimes present opportunities for children to build information processing ...
Instructions for Completing the CMS-1500 (02/12) Claim Form Continued Instructions for Completing the CMS-1500 (02/12) Claim Form Continued
How to calculate the future value of a mutual fund How to calculate the future value of a mutual fund
The Uses of Petroleum in Daily Life The Uses of Petroleum in Daily Life
Life cycle of Obelia, a hydrazoan that has alternating medusa (left) and polyp generations Life cycle of Obelia, a hydrazoan that has alternating medusa (left) and polyp generations
Video: Virtual Tour of the Heart

For a complete list of videos, visit our video library