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

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โˆ™ 2008-08-06 13:43:37
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Q: Are life insurance benefits taxable in Massachusetts?
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In NC are life insurance death benefits taxable?


Are life insurance benefits taxable?

It is not taxable under setion 10(D)

Are life insurance benefits subject to federal income tax?

No. Life Insurance proceeds to beneficiaries are not taxable.

Are life insurance benefits taxable in Nebraska?

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.

Is money inherited from a parent's life insurance policy taxable income?

Death benefits are not taxable for income tax purposes.

Will soon be a beneficiary of a funeral insurance policy that was not discovered until after funeral had been paid in full Is amount taxable?

Life insurance benefits are typically not taxable.

What are five types of income that are not taxable?

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

Are benefits from a whole life insurance policy 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.

Is money gained from a life insurance inheritance taxable income?

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.

Are US life insurance policies taxable?

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.

Is life insuraNCe taxable in NC?


Is life insurance income taxable?


Are life insurance benefits taxable in MN?

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.

Is life insurance 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.

Are death benefits paid to a trust taxable?

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

Are life insurance benefits taxable in North Carolina?

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

If i receive life insurance for deceased husband is it taxable?

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

Can your beneficiary collect life-insurance benefits after your suicide in massachusetts?

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

Is Term life insurance money taxable?

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

Is life insurance face amount taxable?


Are optional life benefits taxable?

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

When was Massachusetts Mutual Life Insurance Company created?

Massachusetts Mutual Life Insurance Company was created in 1851.

Is collecting on a life insurance policy taxable?

Not most of the time.

Are life insurance procees taxable if the employer paid the premiums?

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.

Is there an exception to the rule concerning the non-deductibility of life insurance premium?

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.