Are Life Insurance Payouts Taxable

Are Life Insurance Payouts Taxable

Typically, life insurance settlements are tax free. There are infrequent incidences where tax may be due (such as acquiring ownership of a policy through a life settlement or an old business policy, etc) but the vast majority of life insurance payouts will be tax free.

Recently Answered Questions

More questions about life insurance? Check out some of the most recent life insurance questions we've answered. Please let us know if you have any other questions.

Where Can I Buy Life Insurance On My Parents

This question is coming up more and more as members of the "sandwich generation" deal with aging parents. You can buy life policies on your parents almost anywhere.

In most cases, the parent you are insuring will have to give consent to be insured by signing the application. There are a few cases where you could take out the policy on them without direct consent but, to do this, you would need a formal "Durable Power of Attorney". Carriers that allow you to sign as POA, are usually guaranteed issue carriers so make sure you know what you are buying.

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Justin White, CLU ®

What Does The CLU® Mean

You'll notice the CLU® after my name and that stands for Chartered Life Underwriter. (Click the link to learn more about what a CLU® means.) A CLU® is the highest standard of knowledge and trust in financial planning. Helping people with their life insurance needs is very important to me and something that I hold near and dear to my heart. A CLU® is the premier credential in the insurance profession. Most life and health insurance agents only complete the 40 hours of licensing...

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