Tax treatment of insurance premiums, proceeds, and dividends Flashcards
1
Q
a policy that is paid by one person and covers a single person
A
Individual Life
2
Q
This is a type of permanent life insurance policy that lasts for the insured’s life (assuming premiums are paid), generates cash value based on a fixed interest rate, and may pay dividends.
A
Group Life
3
Q
a term for a cash value life insurance policy permanently denied tax benefits because it holds too much cash.
A
MEC (Modified Endowment Contract
