Question 6. Gain on the surrender of a life insurance policy is taxed at capital gains rates.

True

False

Question 7. The increase of a policy's cash value is subject to tax at ordinary income rates.

True

False

Question 8.  The proceeds of life insurance are always free from ordinary taxes.

True

False

Question 9. The transfer for value rule does not apply to transferees with a valid insurable interest in the life of the insured.

True

False

Question 10 . The transfer for value rule will not apply if there is no consideration for a transfer of life insurance.

True

False