Question $13$

Select the appropriate response

A life insurance company just paid a $$100,000$ death benefit to a beneficiary. When the insured died,

the cash value was $$15,000$ and the total premiums$-$paid equaled $$10,000.$ How much of the proceeds

will be added to the beneficiary's gross income for federal income tax purposes?

Nothing

$$5,000$

$$100,000$

$$105,000$

Question $14$

Select the appropriate response

Life insurance premiums are computed on what three factors?

Mortality, interest, dividends

Morbidity, interest, expenses

Mortality, interest, expenses

Morbidity, interest, dividends