Any return over actuary rate for Lifeinsurance policyholder portfolio is taxed, return up to actuary rate of return on policy portfolio is not taxed. Is this correct?
yes correct. surplus is taxable.
ok…now there were a lot of return terms for Life Insurance and i just want to make sure they all mean the same thing as they were confusing… statatory rate = minimum return? Suplus return = achieved return - minimum return? any others I am missing…
actuary rate of return - rate of return set by actuaries on liabilities. i dont know what statutory rate of return is and what surplus rate of return is. I was just wondering how taxation works. is it anything over actuary rate of return?
i am unclear on these definitions…don’t quote me on them…
the close it gets to exam, less sure i am on everything i’ve learned.
i would think that the statutory rate is the min return gauranteed by the ins companies to the policy holders. if they earn anything in excess it must be taxable…