 I took out a insurance policy in 1990. The agent wrote down the wrong year of my birth. and now he tells me ? |
| He tells me that when I die, the money that I should have been paying monthly, will be subtracted from the total amount of my policy. This means the face value of my policy will greatly decrease. T... |
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 A few days another driver hit my car, so i followed guidelines called the police filed a calim(he was found at |
| at fault i went to get the estimate(672) but his insurance wont pay for it because of so called confliciting stories!! i have the police reports that say he is at fault how is that conflicting what ... |
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 Accidental death insurance claim question? |
| My father died 10 years ago from a accidental drowning accident while tubing at a river, he was not married at the time and I am his only child.Anyway I recently found a accidental life insurance ... |
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 How much does your credit rating affect your car insurance premium? |
The CSR from my company just told me that continuous coverage is much more of a discount than a good credit rating gives you.
So, overall, about what percent do folks in the know think that the ... |
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 Is there any point to making a claim on my housing insurance? |
| My son dropped my camcorder last night & has broken it. The camcorder is 4yrs old now but was in very good codition before my son dropped it, would i be best to claim or just buy a now one? If i ... |
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 I received a statement from my insurance company? |
| but the procedure couldn't be done because of how my body is built, my obgyn tried but was unsuccessful...my insurance has already paid, should I call the insruance company and let them know or ... |
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 I have filed a claim on a life insurance policy. It has been almost 3 months and the insurance company .....? |
| ....still have not paid. Is there a time line for the insurance to pay out? Are there policies by the State requiring they to pay in a timely manner? The company did not give me a definate answer. I ... |
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 What's the penalty for knowlingly using an expired health insurance card? |
| Ex husband using old card from wife's group coverage 2 yrs after divorce! Wife gets statements from insurance co showing recent visits.... |
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 I have a health insurance question.? |
| My husband is self-employed and makes a good living, but we can't afford individual health insurance. He has no employees so we are not eligible for group insurance. Our income is too high for ... |
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 Why are the hardest working folks in this country not allowed health insurance? |
| Like all the small businesses with millions of people in them........it seems to be a noble king and queen thing to me, the peasant population parodox, and remember the farmworker parodox in 1800 ... |
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 Does insurance pay for damage to doors after thieves break in to residence to steal contents? |
| my insurance has refused to pay damage to doors after thieves broke into my rented residential house.my landlord want them repaired at my cost.... |
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 I took traffic school, can the insurance company still jack my rates up? |
I was in a minor accident in 2006. Technically it was my fault but I blame the other douchebag! Can the insurance company still jack my rates up even though I took traffic school?
Additional D... |
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Nicole's Dad | Are proceeds of Life Insurance tax free? |
I have a term life insurance policy with my spouse as the sole beneficiary. I wanted to know if she were to collect on that policy, are there any taxes due on the face value or would she be entitled to the full face value of the policy? |
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Dustin L
 |
Your heirs pay NO income tax on proceeds. Your beneficiaries receive death benefits completely free of income taxation. Therefore, a $500,000 policy delivers $500,000 in benefits with no deductions and no withholding required. This is true with all life insurance policies, both term and cash value. There will be NO TAXES on the death benefit at all.
If you have a large estate (excess of $2 million) and you both die this year, your heirs will have to pay 45% in estate taxes. If you die in 2010 however, there will be NO ESTATE taxes due. Only in 2010 will this 0% be in effect, the amount will reset again in 2011 at 60% for over $1 million in an estate. If you have a large estate such as $1 million or more, it would be beneficial to get a Survivorship Policy which will remain in effect until you both pass away and your heirs will receive enough money to pay the estate taxes that will be due. |
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succeedwithme08
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Yes they are. There are no federal taxes on the death benefit of life insurance unless they are paid to an estate. This only happens if the insured outlives the beneficiaries without designating a new one. If it is paid to an estate it will then become part of the estate and incure estate taxes. |
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src50
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They are not taxable, at least on the federal level. |
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mbrcatz
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They are not taxable, the way you have it set up. |
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americanfreeman
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they are not taxable unless the total estate is well over one million dollars. |
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aaron p
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There are no income taxes due on life insurance proceeds, and with the unlimited spousal deduction, she wouldn't have to worry about federal estate taxes either.
This does not mean if you have a large estate, it wouldn't eventually need to pay estate taxes, but your wife would not have that burden. If your total estate (including the life insurance) is over $1.5 - 2.5 million (depending on whose crystal ball you are using) you should consider talking with an attorney to help minimize the taxes your estate would pay after both of you are gone. |
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Makotto
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No. Should you pass away, the face value of the policy will be tax free. |
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lisalooo
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No, there are not taxes on the death benefit because the premium are payed with taxed dollars so she should receive the entire amount. |
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