Taxation of Life Insurance and Annuities _OH

Study Level:  Advanced
Delivery Method: Online Self-Study
Field of Study: Taxes
Prerequisites: There is no prerequisite for this course; however, an understanding of life insurance and annuity products would be beneficial.

This course provides a comprehensive study of the taxation of life insurance and annuities. It covers the basic rules of individual life insurance and annuity taxation, focusing on income tax, estate tax, and gift tax. Recognizing life insurance and annuities as valuable social tools, current tax law provides generally favorable treatment for these products. Practitioners who understand these rules can provide a valuable service for their clients by helping design and implement life insurance and annuity plans that take maximum advantage of the tax laws. Life insurance and annuities are frequently the tools of choice for planners and their clients because of the many tax benefits these products provide. 

The course covers the following topics:

  • Income Taxation of Life Insurance Death Benefits
  • Income Taxation of Life Insurance Living Benefits
  • Taxation of Viaticals and Life Settlements
  • Income Taxation of Annuities
  • Estate Taxation of Life Insurance and Annuities
  • Gift Taxation of Life Insurance Transfers

This is an advanced level course. Upon completion, students will be able to:

  • demonstrate an understanding of the income, estate, and gift tax treatment of life insurance and annuities
  • differentiate between the tax treatment of  policies classified as life insurance and policies classified as modified endowment contracts
  • demonstrate an understanding of how life insurance policies are taxed when they are sold under a viatical or settlement arrangement
  • recognize how these products should be structured to take full advantage of their favorable tax treatment
  • identify the common situations that may give rise to tax penalties
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