Accelerated Death Benefits from a Life Insurance Policy Received by a Terminally

question 38

True/False

Accelerated death benefits from a life insurance policy received by a terminally ill person may be excluded from taxable income.

---

Definitions:

Secondary Market

The marketplace for buying and selling previously issued securities or financial instruments, such as stocks and bonds.

Initial Sale

The first time a company's product or service is sold, marking the beginning of its commercial journey.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Financial Intermediaries

Institutions that facilitate the channeling of funds between savers and borrowers, by ensuring the flow of capital.