Which of the following statements is true regarding key person disability income insurance?

Which of the following statements is true regarding key person disability income insurance?



a. Premiums are not tax-deductible, but benefits are received tax-free.

b. Premiums are tax-deductible, but benefits are taxable.

c. Premiums are tax-deductible and benefits are tax-free.

d. Premiums are not tax-deductible and benefits are taxable.



Answer: a. Premiums are not tax-deductible, but benefits are received tax-free.

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