answersLogoWhite
Insurance
Life Insurance
Estates
Massachusetts

Are life insurance benefits taxable in Massachusetts?

567

Top Answer
User Avatar
Wiki User
Answered
2008-08-06 13:43:37
2008-08-06 13:43:37

That is the beauty of life insurance! With a properly named beneficiary life proceeds are not taxed and they avoid probate.

001
๐Ÿฆƒ
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0

Related Questions


It is not taxable under setion 10(D)


No. Life Insurance proceeds to beneficiaries are not taxable.


No As a general rule of thumb, any benefit from a personal life insurance policy is not taxable. However, any interest or investment gains earned on the future growth will be taxable.


As a general rule, life insurance proceeds from any type of policy are not taxable to the beneficiary. In addition, any loans from cash value are not taxable unless the policy lapses.


Death benefits are not taxable for income tax purposes.



child support, gifts, inheritances, life insurance benefits, and veterans benefits


No. Death benefits from life insurance are not taxable. The only way that it could be taxes is if you illegally deducted your premiums on your tax returns. As long as the premiums are paid with after- tax money, there is no income tax on death benefits.


As a general rule, life insurance policies in the US are not taxable. However it is taxable if it is combined with a non-refund life annuity.


The death benefit itself will not be considered taxable income. However, if your state requires that the life insurance company pay interest on the death benefit if the claim isn't processed in a certain period of time, then the amount of interest is considered taxable.


Life insurance proceeds paid to a beneficiary is not taxable. However, if the life insurance beneficiary is a trust or estate, there may be some tax implications.


Life Insurance Death benefits are not subject to Federal Income Tax. They might be subject to Estate Taxes.


When paid to a single beneficiary it usually isn't. If it is paid to your estate then it could be.


No but what you do with the money may be taxable.


In the US, the money is not taxable if the beneficiary is an adult.


No. Life insurance benefits are not eligable for taxation unless the insured passed away without assigning a beneficiary. In this situation the benefits are paid into the deceased's estate and are subject to any back taxes or child support owed by the deceased, or the would be inheritor. Cash value is not the same as an insurance benefit and may be taxable in some situations. Group (employment) insurance has no cash value.


You never want to deduct the premiums of a life insurance policy. The reason for this is if you deduct the premiums then the benefits will automatically be taxable. You certainly would not want the proceeds to be taxable just to get a very small tax deduction for the premiums. One of the best things about life insurance is that the proceeds are not subject to income tax. The same thing applies to certain other types of insurance. If you purchase disability insurance at work the premium is paid with after tax money so that the benefits will not be taxable. It works the same way. If the premium is paid by the employer as a benefit of your employer or if a clerk deducts it before tax through a cafeteria plan by mistake then the benefits will be taxable for income tax if you ever get disabled.


They will be taxable at the same rate as the other benefits, unless invested in a tax free vehicle, which will be stated.


No, suicide is an exclusion where a death benefit is concerned.


Massachusetts Mutual Life Insurance Company was created in 1851.


"Insurance and Taxes. No. All proceeds or withdrawals from any insurance policy are not taxable." This is not true. If you cancel a life insurance policy, the growth on the cash value IS TAXABLE. If you do not surrender your policy, the money is taken as a loan and therefore not taxable, but interest that has to be paid back to the insurance company grows.


In Canada, the death benefit from a life insurance policy is typically not taxable. However, if you do not name a beneficiary in the policy, the proceeds will go to the estate of the owner. That amount may be subject to probate fees which can be quite substantial depending on the province you reside in.



The death benefit for life insurance is not taxable assuming it is not a Modified Endowment Contract.


The motto of Massachusetts Mutual Life Insurance Company is 'We'll help you get there.'.



Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.