| Taxes on life insurance benefit? |
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RandRmoney
Contributing Member
Cash: $ 7.65
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Joined: 03 Mar 2011
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| Taxes on life insurance benefit? |
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I am a 40 year old man on social security disability. I was the beneficiary on my father's life insurance policy. Do I have to pay taxes on it?
Tried to do a search but some funky error came up.
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Sun Mar 06, 2011 4:34 pm |
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oldguy
Senior Member
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Location: arizona
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No - it's tax free.
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Sun Mar 06, 2011 5:35 pm |
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RichS
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I agree with oldguy. Life insurance proceeds received by a beneficiary on a life insurance policy are tax free...it is greatest benefit of an insurance policy because you get to keep ALL of the money so you can protect your life style. 
Rich CFP(r)
Writer/Publisher/Speaker
Author "Your In Simple Language Guide to Basic Investments"
www.insimplelanguage.com
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Thu Mar 10, 2011 9:33 pm |
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sethm
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Location: United States
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If you mean the death benefits of the insurance policy, then these funds are generally free from income tax to your named beneficiary or beneficiaries. Moreover, you may elect to have the insurance company hold on to these proceeds after your death and distribute them to your beneficiary at a later date or in a series of installments.
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Tue May 15, 2012 4:40 pm |
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