On January 12, 2022, Rica purchased a P2,000,000.00 life insurance policy for P200,000.00. During the year, Rica died and her heirs collected the entire proceeds. How much proceeds is exempt from income tax?

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Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.