Ms. Martin received $80,000 from a $100,000 life insurance policy as an accelerated death benefit. None of the $80,000 is taxable to her.

Question

Quizplus · Accepted Answer

Generally, accelerated death benefits are not taxable if the policy owner or insured is terminally or chronically ill. Since Ms. Martin received the benefit as an accelerated death benefit and none of it is taxable to her, the answer is A. However, it's important to note that if the benefit is received under different circumstances or in a lump sum, some or all of it may be taxable. It's always best to consult with a tax professional for specific advice on your individual situation.

Ms Martin Received $80,000 from a $100,000 Life Insurance Policy