Self-Study Course Details
One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every bit as much as it applies to stock purchases, bond purchases and the establishment of qualified retirement plans.
In this course we will look at the tax treatment given proceeds from life insurance policies and will consider the taxation of death benefits, cash value withdrawals, loans and surrenders. In addition, we will examine the differences in tax treatment caused by a life insurance policy’s:
- Failure to meet the statutory definition of life insurance;
- Being deemed a modified endowment contract;
- Transfer of ownership to another person for a valuable consideration;
- Sale in a viatical or life settlement transaction;
- Ownership by an employer; and
- Use in a qualified retirement plan.
- Calculate the gain to be recognized as a result of various life insurance policy transactions, including – withdrawals, loans, surrenders, and payment of death benefits
- 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 life insurance policy – has been transferred for a valuable consideration, or was included in a qualified plan
- Recognize the types of life insurance exchanges that are tax-free under IRC §1035 and • 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
Paul J. Winn CLU ChFc is a financial writer, editor and trainer in the insurance industry. Past positions have included product developer, compensation officer, marketing VP, VP of strategic planning as well as being President of Maryland Financial Corporation. Mr. Winn has served on multiple Insurance Industry Boards including Baltimore Chapter of CLU and ChFC and Member/Secretary, Advisory Board to New York State Insurance Department. He is well known as a writer and editor of major mutual life insurance company’s agent-training ”university” and has created more than 100 training/continuing education courses. He is also a published book author.
Encoursa 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: NASBAregistry.org.
Encoursa LLC is an IRS-approved continuing education provider. Provider #: KKRBE
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