1.

Sarah recently discovered that she is the named beneficiary on her aunts life insurance policy. The policy has a face value of $250,000 and she is the sole beneficiary. Which of the following statements are true:

		Sarah can assign the policy as collateral for a loan
		Sarah will have to pay tax on the death benefit based on her marginal tax rate
		Sarah will not have to pay tax on the death benefit

2.

1. All of the following are dividend options found in life insurance policies EXCEPT?

   		Reduction of premiums
   		Accumulation of dividends with interest
   		Purchase paid-up additions (P.U.As)
   		Purchase stock options

3.