A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary rather than being considered part of your estate, which means that:
A) the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes.
B) the cash benefits from your life insurance policy cannot be claimed by creditors.
C) the life insurance proceeds are invested for the beneficiary.
D) the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes.
E) the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably.

Question

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When a life insurance policy is structured so that the death benefits are paid directly to a named beneficiary, those benefits are not considered part of the insured's estate and therefore are not subject to estate taxes or other claims by creditors. The beneficiary typically receives the full amount of the death benefit without any additional taxes or fees.

A Life Insurance Policy Can Be Structured So That the Death