Which of the following is false about dividends paid from life - ProProfs Discuss
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Which of the following is false about dividends paid from life insurance policies? A dividend is:



A. Treated as a returen of excess premium paid by the owner and is therefore taxable
B. If interest is earned on dividends and paid to the policy owner, it is considered taxable
C. Not guaranteed to be paid to the policy owner

This question is part of Practice Exam 4 - Life Insurance
Asked by Nailsexam, Last updated: Jul 05, 2020

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2 Answers

John Adney

John Adney

Answered Jul 08, 2017

Page 60 of the Life in surance manual under the dividend option: it says that the dividends are a return of excess premium payments, and for that reason they are not taxable to the policyowner

 

John Smith

John Smith

Answered Jul 08, 2017

Treated as a returen of excess premium paid by the owner and is therefore taxable
 1

John Adney

John Adney

Replied on Jul 08, 2017

Page 60 of the Life in surance4 manual under the dividend option it says that the dividend are a return of excess premium payments, and for that reason they ae not taxable tobthe poklicy owner

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