tax treatment of life insurance payments

What is tax treatment of life insurance payments?

tax treatment of life insurance payments is The death benefits of a life insurance policy are exempt from taxes. Even with recent tax-rate reductions and a phased-in increase in the amount of a person’s estate that is exempt from estate taxes, the tax-free nature of life insurance benefits makes them a powerful financial planning and wealth- preservation tool. Annuity payments are not tax exempt, although these products may include insurance ‘wrappers’ with exempt benefits.

 

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