ASSESSMENT 01
Taxes
Tax Treatment of Life Insurance Proceeds (2026)
One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every…
2 creditsRecommended continuing education
QAS Self-StudyLearn on your schedule
7 chaptersA structured learning path
3 exams listedReview assessment options below
01 THE BIG PICTURE
A closer look
at this course.
One of the important considerations in many financial transactions is the tax treatment the transaction is given. Often, the impact of taxation is a consideration in the purchase of life insurance every bit as much as it applies to stock purchases, bond purchases and the establishment of qualified retirement plans.
Topics you’ll explore
In this course we will look at the tax treatment given proceeds from life insurance policies and will consider the taxation of death benefits, cash value withdrawals, loans and surrenders. In addition, we will examine the differences in tax treatment caused by a life insurance policy’s:
- Failure to meet the statutory definition of life insurance;
- Being deemed a modified endowment contract;
- Transfer of ownership to another person for a valuable consideration;
- Sale in a viatical or life settlement transaction;
- Ownership by an employer; and
- Use in a qualified retirement plan.
02 LEARNING WITH PURPOSE
What you’ll
take away.
6 learning objectivesCalculate the gain to be recognized as a result of various life insurance policy transactions, including – withdrawals, loans, surrenders, and payment of death benefits;
Identify the changes to the customary tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract (MEC);
Calculate the reportable gain upon receipt of life insurance policy death benefits when the life insurance policy – has been transferred for a valuable consideration, or was included in a qualified plan;
Recognize the types of life insurance exchanges that are tax-free under IRC §1035;
Define the terms “terminally-ill” and “chronically-ill” as used in the Health Insurance Portability and Accountability Act; and
Identify the income tax treatment of accelerated death benefits, viatical settlements and life settlements.
03 YOUR LEARNING PATH
One chapter
at a time.
01Chapter 1 - Tax Treatment of Life Insurance Proceeds
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Open lesson in student portal02TOPIC Life Insurance Death Benefits
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Open lesson in student portal03TOPIC Summary - Life Insurance Death Benefits
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Open lesson in student portal04Chapter 2 - Tax Treatment of Life Insurance Proceeds
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Open lesson in student portal05TOPIC Life Insurance Policy Living Proceeds
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Open lesson in student portal06TOPIC Summary - Life Insurance Policy Living Proceeds
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Open lesson in student portal07Glossary - Tax Treatment of Life Insurance Proceeds
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Open lesson in student portal04 YOUR STUDY RESOURCES
Everything in
its right place.
Course materials and resource information, together in one place.
Course study materialsStudy resources may be included inside the enrolled course lessons.
Open course study area Materials, license & usage information
Copyright 2026 by Winn Publications ALL RIGHTS RESERVED. NO PART OF THIS COURSE MAY BE REPRODUCED IN ANY FORM OR BY ANY MEANS WITHOUT THE WRITTEN PERMISSION OF THE COPYRIGHT HOLDER. All materials relating to this course are copyrighted by Winn Publications. Purchase of a course includes a license for one person to use the course materials. Absent specific written permission from the copyright holder, it is not permissible to distribute files containing course materials or printed versions of course materials to individuals who have not purchased the course. It is also not permissible to make the course materials available to others over a computer network, Intranet, Internet, or any other storage, transmittal, or retrieval system. This document is designed to provide general information and is not a substitute for professional advice in specific situations. It is not intended to be, and should not be construed as, legal or accounting advice which should be provided only by professional advisers. No advance preparation needed Program Level - Basic Program prerequisites - None Delivery method - QAS self-study Recommended CPE credits - 2 Recommended field of study - Taxes
05 PUT YOUR KNOWLEDGE TO WORK
Your course
assessments.
Review the exams listed for this course. Take your assessments in the student portal. Follow this course’s exam completion requirements.
ASSESSMENT 02
Chapter 2 Review - Tax Treatment of Life Insurance Proceeds
MyCECentral enrollment requiredView exam detailsASSESSMENT 03
Final Exam - Tax Treatment of Life Insurance Proceeds
MyCECentral enrollment requiredView exam details06 BEFORE YOU BEGIN
The details
that matter.
- Program level
- Basic
- Program prerequisites
- None
- Delivery method
- QAS Self-Study
- Recommended CPE credits
- 2
- Recommended field of study
- Taxes
- Education type
- tax_cpe
- Tax CPE credits
- 1.00
- IRS CE program number
- NBOAN-T-00021-23-S
Requirements & course notices
No advance preparation needed
Confirm that this course meets your individual professional and licensing requirements before enrolling. Review the course information and contact our team if you need guidance.
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possibility.
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