Art, the owner and insured under a $75,000 life policy, is killed in an accident. He had paid total premiums of $26,000. How much of the death benefit will be included in his gross estate for estate tax purposes?

Art, the owner and insured under a $75,000 life policy, is killed in an accident. He had paid total premiums of $26,000. How much of the $75,000 death benefit that was paid to Art’s wife in a lump sum is taxable income to her?

Sarah, age 65, the owner of a $150,000 whole life policy, decides to surrender the policy and take the $90,000 cash value in a lump sum. Over the years she has paid a total of $54,000 in premiums. How much, if any, of the payments will be taxed?

Bill names his church as the beneficiary of his $300,000 life insurance policy. When Bill dies, who is responsible for the income taxes payable on the lump-sum proceeds received by the church?

All of the following statements about the taxation of insurance proceeds are correct EXCEPT

“Annuity payments are taxable to the extent that they represent interest earned rather than capital returned.” When an annuitized payout option is chosen, what method is used to determine the taxable portion of each payment?