The Annual Increase in the Cash Surrender Value of a Life

question 53

Multiple Choice

The annual increase in the cash surrender value of a life insurance policy:

• A)Is taxed according to the original issue discount rules.
• B)Is not included in gross income because the policy must be surrendered to receive the cash surrender value.
• C)Reduces the deduction for life insurance expense.
• D)Is exempt because it is life insurance proceeds.
• E)None of these.

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Definitions:

Less Likely

A phrase indicating a lower probability of occurrence or happening.

Executive Coaching

A tailored personal development process for high-level professionals aimed at enhancing leadership, decision-making, and management skills.

Weekly

Pertaining to or occurring every week, often used to describe regular meetings, reports, or schedules that recur on a weekly basis.

Biweekly

Occurring every two weeks or twice a week, depending on the context.