life insurance benefits taxable?

by Guest » Sat Oct 01, 2011 06:26 am
Guest

I was wondering if life insurance benefits taxable?

Total Comments: 2

Posted: Sat Oct 01, 2011 07:10 am Post Subject:

Most of the time death benefits are not subject to federal income tax.

But there may be exceptions though, if your insurance policy is looked upon as an investment in disguise.

Ask your insurance agent whether or not your policy benefits will be taxable.

Posted: Tue Oct 04, 2011 06:25 pm Post Subject:

Ask your insurance agent whether or not your policy benefits will be taxable.


Better to ask a professional tax adviser. Insurance agents are prohibited by the companies we represent from giving tax advice. We can only offer "opinions".

Generally, life insurance proceeds are exempt from income taxation. Only if there were a profit-making motive behind the contract might there be an income tax liability.

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