Gary Cashed in an Insurance Policy on His Life

question 19

True/False

Gary cashed in an insurance policy on his life.He needed the funds to pay for his terminally ill wife's medical expenses.He had paid $12,000 in premiums and he collected $30,000 from the insurance company.Gary is not required to include the gain of $18,000 ($30,000 - $12,000) in gross income.

---

Definitions:

Ben Bernanke

An American economist who served as the Chairman of the Federal Reserve, the central banking system of the United States, from 2006 to 2014.

Freddie Mac

A government-sponsored enterprise established to expand the secondary mortgage market by buying loans from lenders, thereby increasing the supply of money available for mortgage lending.

Fannie Mae

A government-sponsored enterprise established in 1938 to expand the secondary mortgage market by securitizing mortgages, thereby increasing the supply of money available for mortgage lending and home ownership.

Culture-War Policy

Public policies or political strategies that emphasize issues related to morality, values, and cultural identity, often resulting in divisive and heated debates within society.