Exam Review

In a Business Buy/Sell policy premiums are not deductible, but the benefits are tax-free. The correct answer is: Business Buy/Sell

A business can deduct premiums in all of the following EXCEPT: Select one: a. Business Buy/Sell b. Group disability c. Business Overhead Expense (BOE) d. Workers compensation

In a business overhead expense policy (BOE), policy premiums are deductible, but the benefits are tax-free. In Business Buy/Sell and Key person disability policies, the policy premiums are not deductible, but the benefits are tax-free. The correct answer is: Business Overhead Expense (BOE)

A business cannot deduct premiums in all of the following EXCEPT: Select one: a. Business Buy/Sell b. Key person disability c. Business Overhead Expense (BOE) d. None of the Above

In a key person disability policy premiums are not deductible, but the benefits are tax-free. The correct answer is: Key person disability

A business cannot deduct premiums in what type policy? Select one: a. Key person disability b. Group disability c. Individual disability d. Workers compensation

In a group disability policy, premiums are deductible for the employer, and benefits are taxable to the employee. The correct answer is: Premiums are deductible for the employer, and the benefits are taxable for the employee.

In a group disability policy, how are premiums and benefits treated for taxes? Select one: a. Premiums are deductible for the employer, and the benefits are taxable for the employee. b. Premiums are deductible for the employer, and the benefits are not taxable for the employee. c. Benefits are never taxable for the employee. d. Benefits are not taxable for the employee, and the premiums are not deductible for the employer.

In a group health policy, premiums are deductible for the employer, and benefits are tax-free to the employee. Benefits are not taxable because they are covering a loss; note the difference between group disability plans where benefits are taxable to the employee. The correct answer is: Premiums are deductible for the employer, and the benefits are not taxable for the employee.

Beau has a group health policy provided by his employer, which of the following is TRUE? Select one: a. Premiums are deductible for the employer, and the benefits are taxable for the employee. b. Premiums are deductible for the employer, and the benefits are not taxable for the employee. c. Benefits are taxable for the employee, and the premiums are deductible for the employer. d. Benefits are not taxable for the employee, and the premiums are not deductible for the employer.

Premiums are not deductible for the employer. The employer is the one who pays the premiums in a key person disability policy; therefore the employee answers are not true. The correct answer is: Not deductible for the employer

In a key person disability policy, which of the following is CORRECT regarding premiums? Select one: a. Deductible for the employer b. Not deductible for the employer c. Deductible for the employee d. Not deductible for the employee

She will receive 30% of the benefits tax-free. In a group disability policy, premiums are deductible for the employer, and benefits are taxable to the employee. If an employee pays a percentage, the benefits are tax-free for the part the employee pays. The correct answer is: Thirty percent of the benefits are tax-free.

Carly has a group disability policy in which her company pays 70% and she pays 30% of the premium; which of the following statements is TRUE? Select one: a. She can deduct for taxes the 30% of the premium that she pays. b. Seventy percent of the benefits are tax-free. c. Thirty percent of the benefits are tax-free. d. Her employer can deduct 70% of the premium, and she can deduct 30%.

In a business overhead expense policy (BOE), policy premiums are deductible, but the benefits are taxed. The correct answer is: Benefits are taxed, and premiums are deductible.

In a business overhead expense policy (BOE), which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are taxed, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

In a key person disability policy premiums are not deductible, but the benefits are tax-free. The correct answer is: Benefits are tax-free, and premiums are not deductible.

In a key person disability policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free. TRH-504

Your answer is correct In an individual disability policy the premiums are not tax deductible, but the benefits are tax-free. The correct answer is: Benefits are tax-free, and premiums are not deductible.

In an individual disability policy, how are premiums and benefits treated for taxes? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

In an individual disability policy the premiums are not tax deductible, but the benefits are tax-free. The correct answer is: Benefits are tax-free, and premiums are not deductible.

Marco has an individual disability policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

In an individual disability policy the premiums are not tax deductible, but the benefits are tax-free. The correct answer is: Benefits are tax-free, and premiums are not deductible.

Question text Piper has an individual disability policy, which of the following is TRUE? Select one: a. Premiums are deductible, and benefits are tax-free. b. Benefits are tax-free, and premiums are not deductible. c. Benefits are not tax-free, and premiums are deductible. d. Premiums are not deductible, and the benefits are not tax-free.

Bobby will receive 30% of the benefit tax-free, but will have to pay taxes on the 70% that his employer pays. In a group disability policy, premiums are deductible for the employer, and benefits are taxable to the employee. If an employee pays a percentage, the benefits are tax-free for the part the employee pays. The correct answer is: Bobby will receive 70% of the benefits not tax-free and 30% of the benefits tax-free.

Surin Global has a group disability policy for its employees. They pay 70% of the premium, and Bobby their employee pays 30%; which of the following statements is CORRECT? Select one: a. Surin can deduct 70% of the premiums that it pays. b. Bobby can deduct the premiums for the 30% that he pays. c. Bobby will receive 100% of the benefits tax-free. d. Bobby will receive 70% of the benefits not tax-free and 30% of the benefits tax-free.

The health plan is noncontributory because the employer pays for the full amount of the premiums. In a group health policy, premiums are deductible for the employer, and benefits are tax-free to the employee. Benefits are not taxable because they are covering a loss; note the difference between group disability plans where benefits are taxable to the employee. The correct answer is: The health plan is noncontributory, and twenty-five percent of the benefits are not taxable in the disability plan.

Surin Global has a group health policy and a group disability policy for its employees. They pay 75% of the premium for the disability policy, and they pay 100% of the premium for the health plan; which of the following statements is CORRECT? Select one: a. The health plan is noncontributory, and twenty-five percent of the benefits are not taxable in the disability plan. b. The premiums are tax deductible for the employer in the health plan, but not tax deductible for disability policy. c. The disability policys benefits are not taxable on seventy-five percent. d. Seventy-five percent of the benefits from the disability policy are taxable, and the health plan is contributory.

Qualified LTC policy premiums are deductible over 10% of a persons adjusted gross income. The correct answer is: LTC policy premiums are deductible over 10

Which of the following is correct regarding premium deductibility for taxes? Select one: a. LTC policy premiums are deductible over 10%. b. Individual disability premiums are deductible. c. Key employee premiums are deductible. d. Individual medical policy premiums are always deductible.