CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Tax Treatment of Life Insurance Proceeds

Icon_Self-Study
Self-Study
Icon_Level
Basic
Credits
CPE Credits
2 Credits: Taxes

Course Description

In Tax Treatment of Life Insurance Proceeds, Paul Winn discusses the income tax treatment of death benefits and living proceeds from life insurance contracts. You’ll learn about the statutory definition of life insurance contained in Internal Revenue Code §7702, the tax consequences of a life insurance contract’s failure to meet the definition, the general rules governing the taxation of life insurance policy death benefit proceeds, consequences of a transfer for value, inclusion of a policy in a qualified plan, corporate-owned life insurance, and the payment of death benefits under a settlement option. The course will also cover the tax treatment of proceeds received under viatical settlements and accelerated death benefits; the federal tax rules concerning taxation of life insurance policy living proceeds; the modified endowment contract (MEC) rules; taxation of policy loans, withdrawals, and surrenders; and the tax treatment of proceeds received under life settlements.

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Compare the customary income tax treatment given to life insurance policy death benefits with the income tax treatment given to such benefits under a life insurance policy transferred for a valuable consideration;
  • Calculate the taxable portion of life insurance death benefits under a policy included in a qualified plan;
  • Identify the tax treatment of death benefits received as periodic payments under a supplementary contract;
  • Define the terms ‘terminally-ill’ and ‘chronically-ill’ as used in the Health Insurance Portability and Accountability Act; and
  • Identify the income tax treatment of accelerated death benefits and viatical settlements.

Chapter 2

  • Recognize the customary income tax treatment given to life insurance policy withdrawals, loans, and surrender proceeds;
  • Identify the changes to the tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract;
  • Identify the types of life insurance exchanges that are tax-free under IRC §1035; and
  • Recognize the income tax treatment of life settlements.

Course Specifics

Course ID
8152539
Revision Date
January 13, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-00933-16-S
IRS Federal Tax Law Credits: 2
CTEC Provider Number: 2017
CTEC Course Number: 2071-CE-0908
CTEC Federal Tax Law Credits: 2

Course Instructor

Paul J. Winn Headshot
Paul J. Winn CLU ChFC

Paul Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.

Tax Treatment of Life Insurance Proceeds

Expert Instructors
Format
CPE CREDITS
2 Credits: Taxes

$58.00$78.00

Clear
Icon_Self-Study
Self-Study
Icon_Level
Basic
Credits
CPE Credits
2 Credits: Taxes

Course Description

In Tax Treatment of Life Insurance Proceeds, Paul Winn discusses the income tax treatment of death benefits and living proceeds from life insurance contracts. You’ll learn about the statutory definition of life insurance contained in Internal Revenue Code §7702, the tax consequences of a life insurance contract’s failure to meet the definition, the general rules governing the taxation of life insurance policy death benefit proceeds, consequences of a transfer for value, inclusion of a policy in a qualified plan, corporate-owned life insurance, and the payment of death benefits under a settlement option. The course will also cover the tax treatment of proceeds received under viatical settlements and accelerated death benefits; the federal tax rules concerning taxation of life insurance policy living proceeds; the modified endowment contract (MEC) rules; taxation of policy loans, withdrawals, and surrenders; and the tax treatment of proceeds received under life settlements.

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Compare the customary income tax treatment given to life insurance policy death benefits with the income tax treatment given to such benefits under a life insurance policy transferred for a valuable consideration;
  • Calculate the taxable portion of life insurance death benefits under a policy included in a qualified plan;
  • Identify the tax treatment of death benefits received as periodic payments under a supplementary contract;
  • Define the terms ‘terminally-ill’ and ‘chronically-ill’ as used in the Health Insurance Portability and Accountability Act; and
  • Identify the income tax treatment of accelerated death benefits and viatical settlements.

Chapter 2

  • Recognize the customary income tax treatment given to life insurance policy withdrawals, loans, and surrender proceeds;
  • Identify the changes to the tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract;
  • Identify the types of life insurance exchanges that are tax-free under IRC §1035; and
  • Recognize the income tax treatment of life settlements.

Course Specifics

Course ID
8152539
Revision Date
January 13, 2020
Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220
IRS Provider Number: 0MYXB
IRS Course Number: 0MYXB-T-00933-16-S
IRS Federal Tax Law Credits: 2
CTEC Provider Number: 2017
CTEC Course Number: 2071-CE-0908
CTEC Federal Tax Law Credits: 2

Course Instructor

Paul J. Winn Headshot
Paul J. Winn CLU ChFC

Paul Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.

Tax Treatment of Life Insurance Proceeds

Expert Instructors
Format
CPE CREDITS
2 Credits: Taxes

$58.00$78.00

Clear