022621 FYI... Is a life insurance benefit taxable to a beneficiary?

As a general rule, death proceeds are excluded

from the beneficiary’s gross income. 

The proceeds are received income tax free by the

beneficiary regardless of whether the beneficiary

is an individual, a corporation, a trustee, 

or the insured’s estate. 

In order for the death proceeds to be fully excluded

from the beneficiary’s gross income, the life insurance

contract must meet the provisions of applicable state

law and the definition of life insurance found in the

Internal Revenue Code.

 

Hayden Childs

Alabama Licensed Agent

(205) 269-1382

www.haydenchilds.net

 

Offering…

Whole, Term, Accidental death,

Critical illness (cancer, heart attack,

Stroke) Renter’s (contents)

Medicare advantage, Supplements,

Hospital indemnity, Health,

Dental & Vision coverage

 

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