Episode Details

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. This episode covers content for the National Exam. In this episode you will learn: • How the transfer-for-value rule converts income tax-free death benefits into taxable income. • The calculation formula for determining the taxable gain when a policy is sold for value. • The five specific business exceptions including transfers to the insured or their partners. • Why transfers to corporations where the insured is an officer or shareholder remain tax-free. • The distinction between a sale for consideration and a gift regarding carryover basis. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep