John purchases a life insurance policy on the life of Mary. John is the owner, and Bill is designated the revocable beneficiary. Under these circumstances, which of the following statements is correct?

I    John is deemed to have made a gift to Bill each time he pays a premium.

II   When Mary dies, John is deemed to have made a gift to Bill equal to the policy proceeds.

I only

II only

Both I and II

Neither I nor II