Respuesta :
The amount in interest is specified in the policy and compounds annually
As some of the life insurance policies are used for paying dividends to the policyholders.
- If the dividends are invested with the insurance company, the interest earned on this investment will be considered taxable income.
- Thus the interest earned on policy dividends is taxable.
Learn more about the earned on policy dividends is.
brainly.com/question/22011202.