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2013-06-30 15:46:03
2013-06-30 15:46:03

The term "premium" relates to the incremental cost of buying and maintaining the insurance on the person or property insured. "Proceeds" relates to the benefits paid by the insurer upon the happening of the event that was insured against (death, disability, damage to property, etc.).

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Get StartedInsurance proceeds on the life of a


Proceeds are the payments of the benefit. So in other words with Life Insurance it is the death claim amount paid out.



No, proceeds of an insurance claim are repayment for your financial loss. It's not considered income.


No. Life insurance is paid the the beneficiary named in the policy, your creditors have no claim against the insurance proceeds EXCEPT if the proceeds are paid to your estate.


Usually, life insurance proceeds are free from federal taxes. If the beneficiary is an individual person/persons, the proceeds of a life isnurance policy are tax-free. If the beneficiary of a life insurance policy is the "Estate" of the insured person, the proceeds may be subject to estate taxes.


An insurance policy and a will are two separate things. The policy is a contract between the insured and the insurance company. The beneficiary of the insurance policy is spelled out in the contract. The insurance company will pay the insurance proceeds to whoever is listed to receive the proceeds. The proceeds from an insuranc policy can be paid into the estate of the deceased and disbursed according to the terms of the will. The issue is who is listed as being the beneficiary of the insurance policy.


If there is a named beneficiary the life insurance proceeds bypass probate and the beneficiary will receive the money. If none is named, the proceeds are paid over to the estate. If the proceeds are paid over to the estate the debts of the decedent must be paid before any assets can be distributed to the heirs.


The Bankruptcy Court has every right to claim the proceeds of a life insurance policy once you are declared by them as insolvent.


Though paying rebate to insured by agents is prohibited, that does not hinder in the way of getting insurance proceeds.


Yes, life insurance proceeds can be used to pay off a mortgage. Proceeds from a life insurance policy can be used for any reason. The proceeds are paid to the beneficiary, free from federal income taxes. If the policy is a mortgage protection policy it usually pays the money directly to the mortgage holding company.


If the insured has died the proceeds from the insurance will be paid AS STATED IN THE POLICY. The proceeds of the claim are not part of the assets of the deceased's estate.


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



No. Life Insurance proceeds to beneficiaries are not taxable.


insurance proceeds are distributed to named beneficiaries In addition an insurance policy of a deceased that does not have a named beneficiary will be included in the probate procedure and the state's probate law of succession will apply.


Yes, even if incarcerated, you will still receive proceeds from a life insurance policy if you are the valid recipient. They will not be able to receive the proceeds if they were the cause of the insured's death.


The life insurance benefit will be paid to the deceased's estate.


If the insurance policy owner did not specify a beneficiary or the beneficiary is deceased, then the life insurance proceeds go to the insured's estate.


NO.. unless the policy does not have nomination. Only nominee will get the proceeds of life insurance policy.



Insurance proceeds are non-taxable funds no matter how the premiums are paid. In Michigan, insurance proceeds received by a spouse,and only a spouse, are also excluded from household income for the Michigan Homestead Property Tax Credit.


Personal life insurance proceeds are generally paid out free of income taxes as long as the premiums were paid with after-tax dollars. But if a business paid the premiums and deducted the premiums as an operating expense, then the life insurance proceeds would be taxable to the beneficiary.


When no beneficiary has been designated the proceeds of a life Insurance policy are assigned to the probate estate of the deceased insured. It would then be apportioned by the probate court to any surviving heirs.


If you are the named beneficiary of their life policies you do. You can call and ask the insurance companies who the beneficiary is and they will tell you that much. I presume your question had to do with claiming the death proceeds as income. If so, the answer is NO! Life insurance proceeds are received income tax free.



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