Tax Treatment of Life Insurance Proceeds
Field of Study:
One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every bit as much as it applies to stock purchases, bond purchases and the establishment of qualified retirement plans.
After completing this course you will be able to:
- Compare the customary income tax treatment given to life insurance policy death benefits with the income tax treatment given to such benefits under a life insurance policy transferred for a valuable consideration;
- Calculate the taxable portion of life insurance death benefits under a policy included in a qualified plan;
- Identify the tax treatment of death benefits received as periodic payments under a supplementary contract;
- Define the terms “terminally-ill” and “chronically-ill” as used in the Health Insurance Portability and Accountability Act; and
- Identify the income tax treatment of accelerated death benefits and viatical settlements.
- Recognize the customary income tax treatment given to life insurance policy withdrawals, loans and surrender proceeds;
- Identify the changes to the tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract;
- Identify the types of life insurance exchanges that are tax-free under IRC §1035; and
- Recognize the income tax treatment of life settlements.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org