Finance

Mary is interested in comparing life insurance policies. Rather than l

Mary is interested in comparing life insurance policies. Rather than looking at the cost per thousand, she would like to compare the rate of return earned on the savings portion of the policy. Which of the following would be of the most interest to Mary? A) the policy’s Linton Yield B) the policy’s surrender cost […]

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Date: September 19th, 2020

Which of the following statements is (are) true regarding taxation of

Which of the following statements is (are) true regarding taxation of life insurance? I. Life insurance proceeds paid in a lump-sum to a designated beneficiary are received free of federal income taxes. II. The policyowner must pay taxes annually on the amount by which the cash value of his or her life insurance policy has […]

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Date: September 19th, 2020

Which of the following statements about the traditional net cost metho

Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are) true? I. The traditional net cost method does not consider the time value of money. II. The traditional net cost method can show that life insurance has a negative cost. A) I only B) II […]

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Date: September 19th, 2020

Brad owns a cash value life insurance policy. Last year, the cash valu

Brad owns a cash value life insurance policy. Last year, the cash value increased by $300. Brad received $100 in policyowner dividends on the policy last year. Brad was the beneficiary named in his grandmother’s $50,000 life insurance policy. When she died this past year, Brad received $50,000. How much taxable income relating to life […]

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Date: September 19th, 2020