Rob owns an individual disability insurance policy with an annual premium of $3,500. The plan...
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Finance
Rob owns an individual disability insurance policy with an annual premium of $3,500. The plan provides for a monthly benefit up to a maximum of $5,000. With regard to the taxation of Rob's disability policy, which of the following statements are true?
1.The $3,500 premium is eligible as a medical expense for the non-refundable tax credits
2. If Rob receives any benefits under the policy, the full amount will be treated as taxable income
3. The $3,500 is not tax deductible
4. If Rob receives any benefits under the policy, the benefit payment will be treated as non-taxable income
Question 19 options:
1 and 2
1 and 4
2 and 3
3 and 4
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