Homework Answers
Option 'II; is correct.
The statement II is only correct.
Dividends paid on life insurance policies are not taxable for federal income tax purposes. Dividends are usually exempt in the hands of the Investor.
ANSWER :
Option : B. II only
Option I is false. Interest on accumulated dividends with the insurer is taxable.
Option II is true. Dividends received by the insured is tax-exempt.
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