David Has Been Diagnosed with Cancer and Is Expected to Live

question 51

Multiple Choice

David has been diagnosed with cancer and is expected to live less than 18 months.David is covered by a life insurance policy with a $400,000 face amount.David cashes in the policy early under a special option and receives 80% of the face amount or $320,000.In the year of collection,David will report

• A)no income.
• B)$80,000.
• C)$320,000.
• D)$400,000.

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Definitions:

Middle-Aged

A term typically referring to people who are in their middle years, often considered to be between 45 and 65.

Passive-Aggressive Behavior

A pattern of indirectly expressing negative feelings instead of openly addressing them.

Hardiness

Personal qualities, including a sense of control, orientation toward personal growth, and commitment to life choices, that influence adults’ ability to adapt to changes and life circumstances.

Frequent Infections

The repeated occurrence of illnesses caused by viruses, bacteria, or other microorganisms, indicating potential issues with an individual's immune system.