Home > Articles > Is Life Insurance Taxed?
Is Life Insurance Taxed?
So is life insurance taxed? This is a very important question which determines how much you can save money or need to pay.
In any instance where I have ever seen a life insurance policy sold or paid for, it was paid with After Tax dollars.
That means that the individual who has paid for it set it up to where there would be no reason for there to be tax required on that money. Any life insurance person I know would only sell to an individual this way.
Now, if he purchased this through his company, he may have had the option to pay for it pre-tax, but again most insurance professionals I know would not have this payroll deducted on a pre-tax basis for this very reason.
No one wants to leave a 1099 tax form for someone to deal with on a life insurance policy. The only time a tax might be required would be if the policy was gaining some kind of dividend tax free or it was tied in with some kind of annuity.
Then again, it really all goes back to how it was set up to begin with.
You can find out more about Types of Life Insurance and how each one is different.
 Top Life Insurance Articles:
Top Home Insurance Articles:
|
