Which of the Following Statements Is False Concerning the Taxation

question 20

Multiple Choice

Which of the following statements is false concerning the taxation of life insurance?

• A)beneficiaries receive death benefits free from any federal taxation
• B)the value of the life insurance death benefit is always included in the insured's estate
• C)if a non insured/owner dies, the value included in the decedent's estate is approximately the cash value of the insurance contract
• D)interest earned on settlement proceeds is taxable

---

Definitions:

Closed Questions

Questions that limit the respondent's answer to a single word or a short phrase, such as "yes" or "no".

Reflection of Feeling

A communication technique used in counseling where the therapist repeats the client's expressed emotions back to them to validate their feelings and promote understanding.

Discouraged

Refers to being made less confident, enthusiastic, or optimistic.

Hopeless

Feeling or experiencing despair, often with the belief that one's situation is impossible to improve.