One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every bit as much as it applies to stock purchases, bond purchases and the establishment of qualified retirement plans. In this course we will look at the tax treatment given proceeds from life insurance policies and will consider the taxation of death benefits, cash value withdrawals, loans and surrenders. In addition, we will examine the differences in tax treatment caused by a life insurance policy’s:
- Failure to meet the statutory definition of life insurance;
- Being deemed a modified endowment contract;
- Transfer of ownership to another person for a valuable consideration;
- Sale in a viatical or life settlementtransaction;
- Ownership by an employer; and
- Use in a qualified retirement plan.
Table of Contents
Delivery Method: Online QAS Self Study.
Advanced Preparation: None