Except in the Case of Qualifying Accelerated Death Benenfits,if a Life

question 62

True/False

Except in the case of qualifying accelerated death benenfits,if a life insurance policy is sold or surrendered for a lump sum before the death of the insured,the amount received is taxable to the extent it exceeds the premiums paid.

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Definitions:

Total Surplus

The total net gain to society from a market transaction, which is the combination of consumer surplus and producer surplus.

Consumer Surplus

The gap between the aggregate amount buyers are willing and able to spend for a good or service, versus what they actually spend.

Property Rights

The legally guaranteed rights to own, use, and dispose of assets, including physical and intellectual property.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits received by all parties involved.