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.

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Definitions:

Agreeableness

A personality trait that describes the extent to which a person is kind, cooperative, and sympathetic towards others.

Social Support

A network of family, friends, and peers that provides emotional, informational, and instrumental assistance.

Catastrophizing

A cognitive distortion that involves seeing an unfavorable outcome to an event and then seeing this outcome as the worst possible scenario.

Openness to Experience

A personality trait describing the extent of an individual's intellectual curiosity, creativity, and preference for novelty and variety.