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Author Question: All of the following statements about the income tax treatment of individually-purchased life ... (Read 78 times)

BrownTown3

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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


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zogaridan

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

Answer: C

Answer to Question 2

Answer: B


BrownTown3

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Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

Dnite

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Reply 3 on: Yesterday
Gracias!

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