A Life Insurance Policy Can Be Structured So That the Death

question 60

Multiple Choice

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary, which means that:

• A)the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes.
• B)the cash benefits from your life insurance policy cannot be claimed by creditors.
• C)the life insurance proceeds are invested for the beneficiary.
• D)the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes.
• E)the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably.

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Definitions:

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