Using His Separate Funds,Wilbur Purchases an Annuity Which Pays Him

question 87

True/False

Using his separate funds,Wilbur purchases an annuity which pays him a specified amount until death.Upon Wilbur's prior death,a reduced amount is to be paid to Marcia for her life.Wilbur predeceases Marcia.Nothing concerning the annuity contract is included in Wilbur's gross estate.

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Definitions:

Insurance Policies

Contracts between an insurer and a policyholder that define the rights and duties regarding financial protection against losses.

Mandated by Statute

Required or enforced by law, typically referring to obligations or actions prescribed by legislative statues.

Insurable Interest

A stake in the continued existence of the person or property insured, sufficient to qualify for purchasing insurance to protect against losses related to that interest.

Insurance Policy

A contract between an insurer and a policyholder that outlines the terms and conditions under which the insurer agrees to indemnify the insured.