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The principal economic purpose of life insurance is to accumulate capital

All of the following are advantages of life insurance except:

No income-tax deduction for premium payments is allowed if the taxpayer is a beneficiary under the policy.

A life insurance policy that has been transferred into an irrevocable life insurance trust can be includable in the grantor’s gross estate if:

Life Settlements are generally entered into to provide for the costs of health care and medical expenses of the insured.

A client died in 2015 and $4,000,000 in policy proceeds were payable directly to his grandson. Assuming that the $4,000,000 was taxed at 40% in the client’s federal estate and that the $4,000,000 bore the estate tax, what additional GST tax is payable on the policy proceeds?

Generally, the lower the number of payments, the lower the annual premium will be, consequently, the rate of growth of policy cash values drops.

The total dollar outlay for life insurance protection is most easily determined for:

A reasonable estimate for long-term growth in earnings might be 3% (inflation rate (5%) minus the average real growth rate of earnings (2%).

What IRS form does a life insurance carrier report the value of a life insurance policy?