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8 Cards in this Set
- Front
- Back
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Premium in life insurance |
Not taxable |
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Cash values in life insurance |
Taxed only if amount exceeds premiums (taxed on gain) |
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Policy loans in life insurance |
Not taxable, interest not taxable |
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Policy dividends in life insurance |
Not taxable, return of excess premium (any interest earned on dividends is taxed |
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death benefit in life insurance policy |
lump sum not taxable any interest earned on benefit is taxable |
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withdrawals with modified emdowments |
taxed on a last in first out bases (LIFO) |
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penalties w/ modified endorsement |
if withdrawn prior to age 59 1/2 there is a 10% penalty |
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death benefit with modified endorsement |
no taxes four lump sum settlement options interest is taxable for other settlement options |
