26 U.S.C. § 101: Certain death benefits

What this document is

26 U.S.C. § 101 - Certain death benefits is a federal tax code published by U.S. Government Publishing Office / Office of the Law Revision Counsel. It is one of the documents that insurance license exam questions are written from, including life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 26 U.S.C. § 101(a)(2)(B) (transfer-for-value exceptions)

  “if such transfer is to the insured, to a partner of the insured, to a partnership in which the insured is a partner, or to a corporation in which the insured is a shareholder or officer.”

• 26 U.S.C. § 101(a)(2)(A): transfer-for-value exceptions (carryover basis)

  “(2) Transfer for valuable consideration In the case of a transfer for a valuable consideration, by assignment or otherwise, of a life insurance contract or any interest therein, the amount excluded from gross income by paragraph (1) shall not exceed an amount equal to the sum of the actual value of...”

• 26 U.S.C. § 101: Section (a) (General Death Benefit Exclusion)

  “gross income does not include amounts received (whether in a single sum or otherwise) under a life insurance contract, if such amounts are paid by reason of the death of the insured.”

• 26 U.S.C. § 101: Subsection (g)(5) (Business-Related Policies Exception)

  “This subsection shall not apply in the case of any amount paid to any taxpayer other than the insured if such taxpayer has an insurable interest with respect to the life of the insured by reason of the insured being a director, officer, or employee of the taxpayer or by reason of the insured being...”

• 26 U.S.C. § 101(g)(1)(A) (accelerated death benefits, terminally ill individual)

  “For purposes of this section, the following amounts shall be treated as an amount paid by reason of the death of an insured: (A) Any amount received under a life insurance contract on the life of an insured who is a terminally ill individual.”

• 26 U.S.C. § 101(c) (interest on proceeds held by the insurer)

  “If any amount excluded from gross income by subsection (a) is held under an agreement to pay interest thereon, the interest payments shall be included in gross income.”

Practice this material

Questions about this source

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