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

Author Question: Which of the following statements is (are) true regarding taxation of life insurance? I. Life ... (Read 157 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jul 11, 2018
Which of the following statements is (are) true regarding taxation of life insurance?
 
  I. Life insurance proceeds paid in a lump-sum to a designated beneficiary are received free of federal income taxes.
  II. The policyowner must pay taxes annually on the amount by which the cash value of his or her life insurance policy has increased.
  A) I only
  B) II only
  C) both I and II
  D) neither I nor II

Question 2

Mary is interested in comparing life insurance policies. Rather than looking at the cost per thousand, she would like to compare the rate of return earned on the savings portion of the policy. Which of the following would be of the most interest to Mary?
 
  A) the policy's Linton Yield
  B) the policy's surrender cost
  C) the policy's traditional net cost
  D) the policy's net payment cost


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

s.meritte

  • Sr. Member
  • ****
  • Posts: 306
Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: A


Capo

  • Member
  • Posts: 545
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review

cam1229

  • Member
  • Posts: 329
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Life's Calendar Life's Calendar
True Forget-Me-Not True Forget-Me-Not
This cover of Life (1925) offered a stereotypical rendering of the new generation: a young couple .. This cover of Life (1925) offered a stereotypical rendering of the new generation: a young couple ..
Life Cycle Nutrition: Toddlers through the Later Years Life Cycle Nutrition: Toddlers through the Later Years
Anterosuperior view of true pelvis (blue) Anterosuperior view of true pelvis (blue)
The lytic and lysogenic life cycles of a temperate bacteriophage The lytic and lysogenic life cycles of a temperate bacteriophage
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library