An employer provides each of its employees with life insurance protection equal to three times the employee's annual salary. Annette, who is 56, has an annual salary of $28,000. Is annette required to recognize income even though she is still alive at the end of the year and thus nothing has been collected on the life insurance policy?

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Wesley Fischer

17 March, 09:52

An employer provides each of its employees with life insurance protection equal to three times the employee's annual salary. Annette, who is 56, has an annual salary of $28,000. Is annette required to recognize income even though she is still alive at the end of the year and thus nothing has been collected on the life insurance policy?

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Gordon Kelley · Answer 1

On the off chance that you kick the bucket during the term, a passing advantage is paid out. On the off chance that you don't pass on during the term, the approach ends toward the finish of the term.

A noteworthy advantage of this sort of approach is that the excellent cash come back to you is totally tax-exempt, as it isn't viewed as salary yet just a discount of premiums.

As you're looking into term life coverage approach choices, you may go over the expression yearly sustainable premium.

Be that as it may, for an every year sustainable premium term approach, the top notch will build every year. After some time it's conceivable to pay more in premiums than what might have been paid for a level premium term approach.