All of the following statements about life insurance are true, EXCEPT: Select one: a. Whole life...

All of the following statements about life insurance are true, EXCEPT: Select one:

a. Whole life insurance is regarded as permanent insurance and is generally more expensive than term insurance.

b. Beneficiaries who receive benefits under life insurance policies after the insured’s death must pay income tax on the death benefits they receive.

c. Term life insurance provides temporary protection for a stated number of years, and is frequently renewable.

d. The incontestable clause states that the insurer cannot contest the policy after it has been in force for a specified time—usually two years.

Solutions

Expert Solution

"b. Beneficiaries who receive benefits under life insurance policies after the insured’s death must pay income tax on the death benefits they receive." is not true since Generally, when the beneficiary of a life insurance policy receives the death benefit, this money is not counted as taxable income.

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jeff jeffy answered 1 year ago

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