_____ 18. If a beneficiary of a life insurance policy receives the insurance proceeds over time in installments, then each installment received is fully taxable.

Question

Quizplus · Accepted Answer

If a beneficiary receives the insurance proceeds over time in installments, only the portion of the installment that represents interest or investment income is taxable, while the portion that represents a return of the original premiums paid is not taxable.

_____ 18 If a Beneficiary of a Life Insurance Policy Receives