Answered

Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?

A. Partially taxable
B. Tax deductible
C. Nontaxable
D. Taxed as ordinary income



Answer :

GinnyAnswer

Final answer:

Accumulated interest earned on dividends from an insurance policy is usually nontaxable, offering a tax advantage to the policyholder.


Explanation:

Nontaxable: Accumulated interest earned on dividends from an insurance policy is typically considered nontaxable. This means that the earnings are not subject to taxation, providing a benefit to the policyholder.


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