Annuity Uses, Life Insurance, and Tax Concepts
Chapters in this video
What this video covers
- How fixed and variable annuities differ in who bears investment risk, and how premium type, income start, tax deferral, liquidity, and surrender charges fit together
- Who owns the group master policy, what a member certificate means, and how contributory and noncontributory plans differ
- Why master policy ownership alone does not let a sponsor replace a member's valid beneficiary choice, and how conversion differs from portability
- How key-person insurance, buy-sell funding, and life settlements work, including who owns the policy and receives proceeds
- General federal tax treatment of personal life premiums, death proceeds, interest, and full cash surrender, including how to calculate taxable gain
- How a policy can become a MEC, what the seven-pay test measures, and how withdrawals and loans are generally treated
- How qualified and nonqualified annuity payments are taxed, and how to calculate group term life imputed income above the $50,000 exclusion
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