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2010-04-28 05:19:01
2010-04-28 05:19:01

Life insurance death benefits are paid out tax-free as long as your premiums were paid with after-tax money. If you have a cash value life insurance policy and surrender the policy, you may be subject to a taxable gain if the total cash value exceeds the cost basis of the policy.


Related Questions

The answer to the question of whether or not beneficiaries have to pay taxes on the money received from life insurance policies is: no they will not have to.

If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %

If you are an individual who receives the life insurance proceeds, you may not have to pay any federal income taxes on the benefits. If the life insurance policy names a trust as beneficiary, the trust may be subject to estate taxes.

If the owner of the policy is not a business, you would not have to pay taxes on a life insurance benefit payout. You should consult with a tax professional in your state for more details.

received life insurance from my deceased father and it wasn't probated but added to his probate estate for taxes and 9 years later they want me to pay all the taxes. is this correct

There are conditions depending on how the premium was paid, but generally, no.

In the USA you do not pay taxes on the Proceeds from an Insurance Claim.

do you have to pay taxes on medical insurance in the state of Washington

Proceeds from a life insurance policy to a beneficiary are usually paid free from federal income tax.

income taxes ? no insurance payments are exempt

Life insurance death benefits are passed to beneficiaries income tax free.

Life Insurance benefits are usually not subject to taxes. It is a benefit, not a gift or income.

You may have to pay capital gains taxes on a life insurance settlement in addition to any income taxes you might owe. Consult with a CPA or tax attorney to learn more about what tax consequences that a life insurance settlement may have.

The benefits from a life insurance policy are treated as part of the estate and subject to the estate tax. They are not subject to income tax.

NAMED beneficiaries of insurance policies do not pay tax on it.

You do not generally have to pay taxes on an insurance settlement claim. You can check with your tax firm or accountant for the rules specific to your state.

Proceeds from a life insurance policy are usually not taxable. This is in the case where a person dies and the company pays the benefits. If a policy is cashed or money is withdrawn from the cash value then this does not apply and you may have taxes in these cases but not from the death benefit.

"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.

No, they will pay the claim to you and then you will be able to do what is fiscally responsible.

With a properly named beneficiary there are no federal taxes on life insurance. What exactly are you asking in your question?

Life insurance is life insurance. Estate taxes is estate taxes. Never the twain shall meet. The survivor receives a check from the insurance company and if he or she is responsible for any estate taxes, it's his or her responsibility. Not the company's. That's why I always recommend my friends to read Norman Dacey's (sp) book How to Avoid Probate II. Lawyers hate this book.

Survivorship life insurance, also known as second-to-die insurance is a type of insurance, which pays out only when a husband and wife both die, so that the insurance money can be used to pay federal taxes. The requirement obviously is to be married.

new york life says no. but I find different answers on line. wish I could get a correct answer.

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