Tax Treatment of Life Insurance Proceeds

Overview

This course examines the tax treatment of life insurance transactions, including death benefits, cash value withdrawals, loans, and surrenders. It also covers tax implications of policies failing to meet statutory definitions, modified endowment contracts, ownership transfers, employer-owned policies, and use in qualified retirement plans.

Find this course for your license

License or Certification

Regulator

Objectives

Upon conclusion of this course, students will be able to:

Calculate the gain recognized from life insurance policy transactions, including withdrawals, loans, surrenders, and death benefit payments
Identify the changes to the customary tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract (MEC)
Calculate the reportable gain upon receipt of life insurance policy death benefits when the policy has been transferred for valuable consideration or was included in a qualified plan
Recognize the types of life insurance exchanges that are tax-free under IRC §1035
Define the terms "terminally-ill" and "chronically-ill" as used in the Health Insurance Portability and Accountability Act
Identify the income tax treatment of accelerated death benefits, viatical settlements and life settlements

Tax Year: 2024

Designed For:

CPAs, EAs, and other tax and financial professionals

WebCE® 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. For more information regarding WebCE administrative policies such as refunds, cancellations and concerns, please contact Support Services at 877-488-9308.

Course Information

Adding additional credit may change exam requirements.

Prerequisites:	General understanding of tax treatment of transactions
Advanced Preparation:	None

At WebCE, we are passionate about delivering exceptional professional development solutions. With world-class customer support and education to serve multiple professions, we're here to help professionals reach their career goals.

Quick Links

Catalog

Business Solutions

Blog

Special Offers

All Products

Information

Privacy

Business Continuity

Accessibility

Sitemap

Terms