A Life Insurance Policy Can Be Structured So That the Death

Multiple Choice

A life insurance policy can be structured so that the death benefits are paid directly to a named beneficiary rather than being considered part of your estate, which means that:

A) the life insurance proceeds are paid directly to named beneficiaries after payment of state or federal income taxes.
B) the cash benefits from your life insurance policy cannot be claimed by creditors.
C) the life insurance proceeds are invested for the beneficiary.
D) the cash benefits are remitted to the beneficiary only after the beneficiary pays estate taxes.
E) the life insurance company makes additional payments to the family of the insured so that they continue to live comfortably.