Rebecca Is the Beneficiary of a $500,000 Insurance Policy on Her

question 566

Multiple Choice

Rebecca is the beneficiary of a $500,000 insurance policy on her husband's life. She elects to receive $52,000 per year for 10 years rather than receive the entire amount in a lump sum. Of the amount received each year

• A) $5,000 per year is tax free as a death benefit.
• B) $50,000 is taxable income.
• C) $52,000 is taxable income.
• D) $2,000 is taxable income.

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Definitions:

Deinstitutionalization

The process of moving patients with mental illness out of institutional settings and into community-based treatment, significant in the history of mental health treatment, especially from the mid-20th century onwards.

England and Wales

Administrative entities in the United Kingdom characterized by their own legal system known as English law.

Deinstitutionalization

The process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder.

Group Homes

Residential facilities where people who cannot live independently, such as those with disabilities or children without guardians, share living spaces and responsibilities.