Life Insurance

Are the proceeds of a life insurance policy taxable?

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Wiki User
2015-07-14 16:05:21

They are usually not subject to Income Taxes, but may be subject

to Estate Taxes. It would be VERY unusual for income taxes to be

due. Federal estate taxes are not an issue if you are of modest

means, but your state may have estate, inheritance, or death taxes

that could impact most anyone.

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