A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?

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A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed?

A flat tax of 10% is owed on all proceeds

Federal income tax is owed if proceeds exceed $250,000

No federal income tax is owed on life insurance proceeds

Tax liability owed depends on the type of life insurance policy

Answer: No federal income tax is owed on life insurance proceeds

Life Insurance Premiums Proceeds and Beneficiaries

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How many pair of glasses in a 12-month period will a vision expense insurance plan cover?
The voluntary relinquishment of a legal right is called
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