My employer pays for my life insurance. If I qualify for the accelerated death benefit, would it be taxable? If yes, what would be the rate?
Total Comments: 1
Posted: Fri Nov 15, 2013 09:19 pm Post Subject:
If I qualify for the accelerated death benefit, would it be taxable? If yes, what would be the rate?
The IRS has never issued guidance on Accelerated Death/Terminal Illness Benefits. It does not consider them income, but an advance payment of the death benefit. Because insurance companies do not pay more than about 50% of the death benefit or $250,000-$300,000 (whichever is less), the IRS has never been concerned with a policyowner/insured receiving money he really wouldn't be entitled to receive.
Posted: Fri Nov 15, 2013 09:19 pm Post Subject:
If I qualify for the accelerated death benefit, would it be taxable? If yes, what would be the rate?
The IRS has never issued guidance on Accelerated Death/Terminal Illness Benefits. It does not consider them income, but an advance payment of the death benefit. Because insurance companies do not pay more than about 50% of the death benefit or $250,000-$300,000 (whichever is less), the IRS has never been concerned with a policyowner/insured receiving money he really wouldn't be entitled to receive.Add your comment