All of the following statements about the income tax treatment of indi

All of the following statements about the income tax treatment of individually-purchased life insurance are true EXCEPT

A) policyowner dividends are received tax-free.
B) the annual increase in cash value is not taxable while the policy remains in force.
C) premiums paid for individual life insurance are a tax deductible expense.
D) life insurance proceeds paid to a beneficiary in a lump-sum are received tax-free.

ANSWER

Answer: C