Exam 5: Health: Tax Issues in Life Insurance

Voluntary group life insurance plans, or those that are elected by and paid for by an employee, may be included in a cafeteria plan under IRS __________ of the tax code.

Based on IRS rules, if an individual is paying out-of-pocket for their employer group health insurance coverage under COBRA, then the premium amount is considered as __________ for tax purposes.

Most withdrawals from life insurance policy cash value amounts are typically tax free up to __________.

The types of insurance premiums that count toward an individual's medical expenses for income taxation purposes include:

If a life insurance policy violates the __________ rule, the proceeds that are received by the beneficiary, with limited exception, will be taxable as ordinary income.

Employers that pay some or all of their employees' group health insurance premiums will be allowed to ____________.

When a life insurance policy is surrendered or lapsed, any gain in the policy's cash value will be __________.

Inclusion of life insurance death benefits as part of an insured's estate may cause the benefits paid to the estate to be taxable at the __________ level(s).

In most cases, life insurance policy dividends are received __________.

In most cases, employers can deduct __________ of the health insurance premiums that they pay for qualifying group health plans.

The best form of life insurance coverage for an individual whose goal is to reduce or eliminate estate taxes upon their death is __________.

What is the U.S. payroll tax that is imposed by the federal government on both employers and employees to fund Medicare and Social Security?

If the proceeds of a life insurance policy are paid to the estate of an insured individual, then these proceeds will be __________.

The interest that is repaid by a life insurance policy holder who has taken out a loan is considered to be consumer interest and is therefore __________.

The inside build-up of cash value in a life insurance policy is not considered to be taxable unless or until the policy is __________. This is true even if the cash value is taken out as a loan.

If a life insurance policy holder takes out a loan from their whole life insurance policy's cash value, what happens with the portion of the loan that has not been paid back if the policy is later cancelled or lapsed?