Life Insurance

How is life insurance paid off in the case of a death and is it taxable?

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Wiki User
2005-10-23 19:37:57

Life insurance proceeds are not taxable when they are paid out

as a death benefit. Depending on the amount of the insurance policy

the payout options should be either lump sum, annuitized, fixed

monthly payments for a period of time, or left with the insurance

company in an interest bearing account with check writing


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