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:

Trial Balance

A report that lists all the balances of a company's general ledger accounts to verify that debits equal credits.

Common Stock

A type of equity security that represents ownership in a corporation, with holders having voting rights and potentially receiving dividends.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profit.

Trial Balance

An accounting report that lists the balances of all accounts in the general ledger at a particular point in time to check for errors.