American_Bankers_Association
CTFA · Question #5
Under an employer's group life assurance policy, what is the normal tax treatment of the death benefit?
The correct answer is D. It is not liable to any form of taxation. See the full explanation below for the reasoning.
Taxation
Question
Under an employer's group life assurance policy, what is the normal tax treatment of the death benefit?
Options
- AIt is liable to Inheritance Tax
- BIt is liable to Capital Gains Tax
- CIt is liable to Income Tax
- DIt is not liable to any form of taxation
How the community answered
(50 responses)- A2% (1)
- B10% (5)
- C4% (2)
- D84% (42)
Topics
#group life assurance#death benefit#employer policy#tax treatment
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