Except in the case of qualifying accelerated death benefits,if a life insurance policy is sold or surrendered for a lump sum before the death of the insured,the amount received is taxable to the extent it exceeds the premiums paid.

Question

Quizplus · Accepted Answer

When a life insurance policy is sold or surrendered for a lump sum before the death of the insured, the amount received is taxable to the extent it exceeds the premiums paid, except in the case of qualifying accelerated death benefits.

Except in the Case of Qualifying Accelerated Death Benefits,if a Life