Nebraska Life and Health License Practice Exam

The statement regarding premiums paid for individual disability income insurance not being deductible is accurate. This aligns with tax regulations that stipulate that the premiums for individual disability income insurance policies are generally not deductible by the policyholder. However, the benefits received from such policies are typically tax-free when they are received. This characteristic makes individual disability policies distinct from some other types of insurance where premiums may be deductible under certain conditions.

When considering the other options, group health insurance premiums are often deductible for employers, and certain limits apply to amounts that can be deducted. Employer-paid life insurance premiums have specific tax implications; while the premiums are generally not taxable to the employee, there may be exceptions for amounts exceeding a certain coverage limit. Regarding medical expenses, they are subject to thresholds and limits for deductibility on personal tax returns, meaning that they are not always fully deductible without meeting specific criteria.