With regard to the taxation of life insurance policies, which of the following statements is CORRECT?
A) Amy owns a participating life insurance policy on her own life. She can deduct the premium payments, but she will be taxed on any dividends the policy may pay.
B) Donita has taken a policy loan to use as collateral for a loan. The amount of the loan is taxable.
C) Terry owns a 10-year-old whole life insurance policy, which she surrenders for cash. She will be taxed on the full amount she receives, since the policy did not mature.
D) As long as a whole life policy is not surrendered, the cash value accumulates tax deferred.
Ans: D) As long as a whole life policy is not surrendered, the cash value accumulates tax deferred.
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Michael's company would like to sell its products to a company in Nicaragua, but it fears that the company will not pay for the products in a timely manner. Instead of asking for cash, Michael's company decides to ask for a shipment of coffee and tobacco products in exchange for their products. What type of countertrade is Michael's company using?
a) offset b) switch trading c) barter d) counterpurchase
What is an organizational role?
What will be an ideal response?