Oklahoma Life, Health, & Accident-Taxation of Life & Annuity

Card Set Information

Author:
hicksmix6
ID:
306112
Filename:
Oklahoma Life, Health, & Accident-Taxation of Life & Annuity
Updated:
2015-08-06 11:27:55
Tags:
Oklahoma
Folders:
Insurance
Description:
L-110
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  1. The death benfit payable in a lump sum to a beneficiary is received:
    a. subject to estate taxes
    b. subject to income taxes
    c. subject to both income taxes and estate taxes
    d. income tax free
    d. income tax free
  2. If the policy owner cash surrenders a life insurance policy, the cash value upon receipt is:
    a. subject to income taxes on the entire amount
    b. subject to estate taxes on the gain between cash value and premiums paid
    c. subject to income taxes on the gain between cash value and premiums paid
    d. not subject to income taxes
    c. subject to income taxes on the gain between cash value and premiums paid
  3. All of the follwoing are true regarding the taxation of life insurance, EXCEPT?
    a. dividends are considered a return of premium and not subject to income taxation
    b. premiums paid on key person life insurance policies are tax deductible
    c. cash surrender values that exceed the premiums paid are subject to ordinary income tax
    d. life insurance proceeds paid in a lump sum payment are paid income tax free
    b. premiums paid on key person life insurance policies are tax deductible
  4. Regarding the taxation of life insurance policies, which of the following is NOT true?
    a. life insurance proceeds paid in a lump sum cash settlement are not income taxable
    b. life insurance premiums are not tax deductible
    c. life insurance loans are not income taxable
    d. life insurance policy dividends are taxable income
    d. life insurance policy dividends are taxable income
  5. All of the following are correct about taxation involving life insurance, EXCEPT?
    a. income tax is payable by the primary beneficiary for life insurance proceeds
    b. a sponsor of a group may tax deduct the premiums of life insurance
    c. a 1035(a) exchange allows the policy owner to surrender a life policy and us the proceeds to fund another life insurance product
    d. estate tax is a federal tax on the value of a deceased person's property
    a. income tax is payable by the primary beneficiary for life insurance proceeds
  6. All of the following are types of annuity options, except?
    a. flex premium deferred
    b. joint and survivor life income
    c. life income
    d. life income period certain
    a. flex premium deferred

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