What percentage of personal life insurance is usually deductible for federal income tax purposes?
What percent of personal life insurance premiums is usually deductible for federal income tax purposes? In general, personal life insurance premiums are NOT deductible for federal income tax purposes.
Which statement is true regarding a minor beneficiary quizlet?
Which statement is true regarding a minor beneficiary? In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.
Which statement is true regarding a variable whole life policy?
Which statement is true concerning a Variable Universal Life policy? With Variable Universal Life, the policyowner controls the investment of cash values and selects the timing and amount of premium payments.
Which statement about accelerated death benefits is correct?
Which statement about accelerated death benefits is CORRECT? An accelerated death benefit payment can be requested when the insured has limited life expectancy or meets certain medical circumstances.
Which of the following is the reimbursement of benefits for the treatment of a beneficiary?
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? "Subrogation". Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured.
Which type of life insurance beneficiary requires his or her consent?
If you're the owner of a life insurance policy with a revocable beneficiary, you can change the beneficiary of your policy without consent from the current beneficiary. On the other hand, a policy with an irrevocable beneficiary requires the policyholder to get the current beneficiary's consent before making a change.
Is whole life insurance Taxable?
For starters, the death benefit from a whole life insurance policy is generally tax-free. But a whole life policy also features a cash value component that's guaranteed to grow in a tax-advantaged way – it will never decline in value. As long as you leave the gain in your policy, you won't owe taxes on it.
Which of the following is not true about variable universal life policies?
Which of the following is not a characteristic of a variable universal policy? The variable universal life policy DOES have cash value that varies with the performance of the investment. The correct answer is: It has no cash value.
Which of the following is correct regarding credit life insurance quizlet?
The correct answer is: Endowment contracts endow only upon the insured's death. Credit life insurance is issued on the life of the person who has the debt (debtor) and the creditor owns and is the beneficiary of the policy. You just studied 14 terms!
Which statement regarding life insurance accelerated benefits is correct?
All the following statements about life insurance living benefits riders or provisions are correct EXCEPT: Accelerated benefits are payable to insureds who require hospitalization for any reason. There are two basic types. If they are used, the net death benefit paid to beneficiaries is reduced in most cases.
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy? They are always taxable to chronically ill insured.
Is accelerated life insurance taxable?
Accelerated death benefits are typically not taxed as income. In order to qualify for an accelerated death benefit, a policy owner needs to provide proof that they are chronically or terminally ill. Taking accelerated death benefits will reduce the amount of money received by beneficiaries.