Misconception · MIS:life-insurance-premiums-must-match-proceeds-section

Mistaken idea “Corporate-owned life-insurance premiums must match the proceeds section”

Mistaken reasoning: This mistake forces premium payments into investing because settlement proceeds are investing inflows.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Settlement proceeds have an investing route. Premiums retain the entity's supported operating, investing, or combined policy rather than an automatic matching rule.

Where to watch

When this mistake may appear

  • The premiums and proceeds belong to one policy.
Check your work

Your work may contain this mistake if:

  • Ignores the permitted premium classification policy and its consistency.