Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?


A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit

B. There are no deductions taken from death benefits.

C. Penalty imposed for early withdrawal of the death benefit, plus the amount of earnings lost by the insurance company in interest income

D. 10% federal death benefit income tax, plus the amount of the accelerated benefit


Answer: A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit

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