Which of the following is a tax advantage associated with cash value insurance?
A) Capital gains taxes on the cash value build-up are deferred until the cash value is withdrawn.
B) Ordinary income taxes on the cash value build-up are deferred until the cash value is withdrawn.
C) At death the face amount of the policy passes to the beneficiary free of either income or capital gains taxes.
D) All of the above are tax advantages of cash value life insurance.
Correct Answer:
Verified
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