Question

question 11 of 12
which concept is associated with “exclusion ratio”?
a. dividend distribution
b. how exclusion riders affect an insurance premium
c. policy provisions
d. annuity payments

Explanation:

The exclusion ratio is used in the context of annuity payments. It determines the portion of each annuity payment that is considered a tax - free return of principal and the portion that is taxable income.

Answer:

D. Annuity payments