1. How are life insurance death benefits paid in a lump sum to a named beneficiary generally treated for federal income tax?

Generally received income-tax-free

Lump-sum life insurance death benefits are generally not subject to federal income tax.

2. The growth of cash value inside a permanent life policy is generally:

Tax-deferred while it remains in the policy

Cash value generally accumulates on a tax-deferred basis as long as it stays within the policy.

3. When annuity payments are received, the portion representing investment gain is generally:

Taxed as ordinary income

The gain portion of annuity distributions is generally taxed as ordinary income, while return of cost basis is not.

4. Premiums paid for a personal life insurance policy are generally:

Not tax-deductible

Premiums for personal life insurance are generally not deductible for federal income tax purposes.