Health and Life Insurance

Category - Tax Issues

The premiums that an insured chooses to contribute to their life insurance cash value are made with __________ dollars.
  1. Tax free
  2. Tax deferred
  3. After tax
  4. Tax indexed
Explanation
Answer: C - The premiums that an insured chooses to contribute to their life insurance cash value are made with after tax dollars. These dollars may be charged an administrative fee when they go into the policy. An illustration can help to show how much the cash value will build with additional amounts that are contributed.
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