Top Answer
User Avatar
Wiki User
Answered 2009-06-18 23:09:59

Life insurance proceeds are usually tax-free.

User Avatar

Your Answer

Related Questions

The definition of AXA Variable Annuity is a life insurance policy that give the option of market appreciation. It gives you a variety of investment options with your policy.

Yes, if the policy was in the sole name of the diseased - because the contract/policy is with the person NOT the car.

Progressive Insurance can write a policy for you and your parent, but the parent is excluded as a driver because they do not have a license.

The cash value can be borrowed from the insurance policy and an annuity purchased with it. Depending upon the insurer, you may be able to have the two transactions done with the same company (assuming you wish to buy an annuity product from that company). Keep in mind, however, that the cash value withdrawal is a loan that accrues interest according to the terms of the policy. Therefore, in order to make the transaction worthwhile, the annuity must throw off sufficient income to make up for the reduction of value of the insurance policy due to accruing interest on the policy loan.

Variable annuity is good for a person looking for long term invesment options if they are wanting to retire in the future. It is a great option for that, but it may not be the best option for a life insurance policy. However, there are some reliable variable annuity life insurance companies like Valic.

Partial surrenders are fairly simple. They are removal of a portion of the original cash balance of an insurance policy or annuity. You should either contact your insurance agent or the company from which you purchased your policy.

Yes, you can take out a life insurance policy on a parent. There must exist insurable interest between the owner and insured of a life insurance policy. There does exist insurable interest between spouses, parents and children, and siblings. So, yes, you can buy life insurance on your parent. Your parent may need to sign the application, answer some health questions, or take a medical exam to qualify for life insurance.

The best way, in my opinion to consider what insurance company to purchase an annuity variable from, is to find a policy that best suits me. Does it offer death benefits? Is it tax-free? And am I at the appropriate age to get an annuity variable without being taxed. You also want to consider whether you want short or long term annuity.

They are both good invesment instruments when used for the right purposes. Both are insurance policy contracts with distinctive features and differences.

Annuity insurance is a policy which one would have and would withdraw on. They are popular with persons who still would like a steady income after retirement. One could invest and yet still receive funds to live on.

A parent or other adult can purchase insurance for a minor. A minor might not be able to make the payments on a policy.

Yes, most life insurance policies that accumulate cash value give you the option to take loans, not to exceed the cash value amount. It does not matter if the life insurance premiums are paid from an annuity.

Yes but it depends on the type of annuity and if it the policy qualifies.

Contact the insurance company for information on how to make your claim and ask if they can supply a copy of the policy.

I believe you are asking about waiver of insurance policy premium. There are certain insurance policies like children's plans, where even if the policy holder (Parent) is no more, the insurance company would waive off the premium payments and continue to provide the benefits to the policy beneficiaries (Children)

Either parent could provide insurance for a child under their auto insurance policy. Alternatively, the child could obtain their own auto insurance policy if either parent is willing to countersign sign the insurance application with the child. As far as liability causation the parent who facilitated the acquisition of the automobile wold have the greater responsibility for resulting damage and liabilities.

Whoever your daughter lives with is the responsible party to cover her on their insurance policy!

Southern Life Insurance became London Pacific Life and Annuity in 1989. It later became Philadelphia American Life. For information on a policy you can visit the company's website at

Your annuity policy document should have all the withdrawal provision detailed for you. If not contact the company you have the annuity with and they can give you instructions. Before you withdraw from an annuity be aware of the tax treatment of your annuity withdrawals.

Yes and you can read more in the link below.

The provisions of the insurance policy would be the only ruling authority. Check the wording of the policy.

Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.