The cardinal virtue of life insurance is enshrined in **Internal Revenue Code (IRC) Section 101(a)(1)**: the general rule that death benefit proceeds are received by the beneficiary **income tax-free**. This tax exemption is the bedrock…
Split-Dollar Life Insurance is not a specific type of insurance product, but rather a specialized **method of ownership and funding** used to share the costs and benefits of a permanent life insurance policy between two…
The **Dividend Scale** is the signature feature of **Participating Whole Life Insurance** issued by mutual companies. Unlike dividends paid by publicly traded corporations (which are distributions of shareholder profit), a life insurance dividend is technically…
Life insurance contracts, particularly permanent policies extending over multiple decades, are financial promises built upon a complex foundation of **Actuarial Assumptions**. These assumptions are the explicit projections made by the insurer regarding future economic and…
The **Underwriting Process** is the analytical cornerstone of life insurance, functioning as the primary mechanism for assessing and pricing mortality risk. It involves a systematic evaluation of an applicant’s medical history, financial profile, and lifestyle…