Life Insurance (Individual and Group)

Free CFP Exam lesson in Risk Management and Insurance Planning. 18 min read, ~2,751 words.

Non-MEC = FIFO (basis out first, tax-free; loans non-taxable); MEC = LIFO (gain first, taxable, loans also taxable, plus 10% penalty before 59½). Section 79 imputed income: (coverage minus $50,000) / $1,000 x Table I rate x 12. Death benefits are income-tax-free under IRC 101(a) regardless of MEC status; cash...