All of the following statements about the tax treatment of life insurance are true EXCEPT:
(a) While a cash value policy is in force, the cash value accumulates tax-free.
(b) Policyowners are required to pay taxes on policyowner dividends.
(c) Lump-sum death benefits are received tax-free.
(d) If life insurance proceeds are paid through an annuity, the portion of the annuity payment that represents interest is taxable income.
Ans: (b) Policyowners are required to pay taxes on policyowner dividends.
You might also like to view...
“Rule 11” is part of the rules of procedure in civil court. This rule allows a trial court judge to:
A. Dismiss a juror who appears to be biased against one of the litigants. B. Fine a lawyer whose conduct was reprehensible to be in contempt of court. C. Fine a witness to be guilty of perjury. D. Penalize a lawyer for filing a frivolous lawsuit by assessing a fine. Dismiss a case prior to the start of a trial for failure of the plaintiff to state a cause of action.
Describe the most common forms of marketing organizations
What will be an ideal response?