Greg Is the Owner and Beneficiary of a $100,000 Policy

question 18

Multiple Choice

Greg is the owner and beneficiary of a $100,000 policy on the life of his mother.Greg gives the policy to his brother,Don.Don subsequently pays premiums of $40,000.Upon his mother's death,how much of the insurance proceeds must Don include in income?

• A)$0
• B)$40,000
• C)$60,000
• D)$100,000

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Definitions:

Personal Appeals

Influencing tactics that leverage the personal relationship between the influencer and the target, often invoking loyalty or friendship.

Coalition Building

The process of creating alliances among diverse groups or individuals to work toward a common goal.

Commitment

An individual's psychological attachment to an organization, idea, or relationship, typically reflected in their willingness to persist through difficulties.

Compliance

The act of conforming to or following rules, standards, or laws.