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Income Tax Planning
Chapter 13: Nontaxable Exchanges/LIFE INSURANCE POLICY LOANS
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 13: Nontaxable Exchanges

LIFE INSURANCE POLICY LOANS

01.Core Concepts

• Borrowing does not trigger taxable income provided that the policy remains in force for the lifetime of the insured. • If surrendered, the amount borrowed will be treated as part of the distribution upon surrender and subject to income taxation.