Which of the Following Is a Tax Advantage Associated with Cash

question 95

Multiple Choice

Which of the following is a tax advantage associated with cash value insurance?

• A)Capital gains taxes on the cash value build-up are deferred until the cash value is withdrawn.
• B)Ordinary income taxes on the cash value build-up are deferred until the cash value is withdrawn.
• C)At death the face amount of the policy passes to the beneficiary free of either income or capital gains taxes.
• D)All of the above are tax advantages of cash value life insurance.

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