 I am an uninsured driver. I got into a fender bender in a grocery parking lot? |
| It happened today. I believe it was my fault. I called the police, they said we didn't need an officer as long as noone was hurt.The other driver was so shook up she called her husband and he ... |
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 How do you get a health insurance company to pay for a claim after it was initially denied? |
| My wife was having severe headaches and feared she had a serious medical problem. I took her in to the emergency room, they gave her a shot and a perscription and diagnosed it as sinusitis (sp). T... |
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 Double insurance? |
| I took out two different insurance policies on my mobile phone about a year ago. (Long story....) Will "they" find out if I claim my broken phone from both insurance companies? No need to ... |
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| Can I sue my neighbor for damages if his tree falls on my hottub? |
| The tree destroyed the cover which cost $500. We were renting the house and did not have insurance. The neighbor said he would take care of it. He did by putting on an extension and a new deck on his ... |
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 Best life insurance? |
| i am 30 yrs old,male ,non smoker, but i am on hypertensive and cholesterol meds. what is the best life insurance i can get? how much approximately would be my monthly payment?... |
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 Life Insurance: Variable Life vs Whole Life, which one is really better? |
| Is Whole Life premium more money than Variable Universal Life? I asked for a Whole Life insurance quote from one of the big insurance companies around, instead the agent tries to convince me that I... |
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 Can my homeowners' insurance be different than my car insurance? |
| Silly question, but just wanted to know. Also, I have two pit bulls and was wondering which insurance agencies do not have dog restrictions. I have Nationwide car insurance and I would have to take ... |
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 Got hit and she was uninsured? |
| woman hit me this morning and the cops came did not impound her vehicle. I called her ins. and my ins. and found out she did not have any insurance. I am covered thru my insurance, what do I do?Do ... |
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| Whole Life vs. Term Insurance? |
| People always ask about whole life vs. Term Insurance and the insurance salespeople always defend Whole life and trash Suze Orman (not a fan of her anyway)... But they fail to prove the point with ... |
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 Can my boss take away my benefits? |
| I have worked at the same small business (in Michigan) for 8 years. I began getting health and dental benefits four years ago. I had to pay half for the first two years then two years ago my boss ... |
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 Can a mother keep her 23 year old son from a life insurance inheritance? |
| well i have a friend who is supposed to be getting money from a life insurance inheritance , he found out that his mother has been getting a check for him since he was young but refused to give it to ... |
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 Can I qualify for insurance if I had a lapse in coverage? |
| I have heard if you have insurance you cannot be turned down for insurance as long as you are going from one to the other with no lapse. I have had some health issues and my husband may be losing his ... |
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 What to do in this situation? I just don't want the insurance company to screw us...? |
| My wife got hit in the back of her truck by this lady with her car. It was reported to police and today we called our insurance co. and her insurance to claim this accident. He ins. company tell us ... |
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| Can I find an old life insurance policy bought for me as a child? I'm over 60 and stepmom still has it on me. |
My dad passed away and I need this money. Is this legal? She's just being mean.
Additional Details
A few years ago there was interest on this policy in my name in "Lost Money, ... |
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Steve S | Is life insurance taxable at payout time.? |
So if I die and my husband collects the $, is that $ taxable? |
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Doing the Right Thing
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Only if the policy is a modified endowment contract. If not, then no income taxes will be charged on the death claim.
However, if your husband dies before you do and then you die, the death claim will be paid toward his estate. Then estate taxes will apply upon any family member that claims the money. |
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insuranceguytx
 |
Generally not taxable. There are exceptions.
Why not work with an agent or financial planner who can guide you through this and all the other questions that arise?
You rely on a message board for answers to these critical questions yet no one on here MUST provide an accurate answer. No one here knows all of the details of your life, your financial situation or your particular policy. |
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avaldreteiv
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In most cases the answer is no.
Becarefull though because if the policy is a cash value life insurance policy, such as a whole life, universal, or variable universal life insurance policy it can become what is known as an Modifide Endowment Contract (MEC for short) and if that happens then a portion of the payout can be taxed as ordinary income. This is very rare and is most common with Single Premium contracts. The place to look is in the illustration that came with your policy you can look for any notations in the fine print that would indicate if and when the policy becomes a MEC.
Also if your employer is paying the premiums, make sure they are not deducting the premiums on their tax returns, becuase if they are... and IRS catches them on that, your spouse will more than likely be paying taxes on the payout.
Then there are the Estate Tax questions, Generally the best thing to do here is to rather have your spouse be the beneficiary have a living trust be the beneficiary and that will elivate a lot of headaches. Consult a qualifed Estate Planner along with an life agent who does a lot of estate planning. They will be able to design a comprehensive plan for you that will not only help transfer you estate as you desire but can add the liquidity needed to pay any and all estate taxes. |
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Ladybuggg
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http://mylifenet.com/ |
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Hadley
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When a person insured by a life insurance policy dies during the term of the policy the proceeds are paid to the beneficiary or beneficiaries.
Life insurance death benefit proceeds are usually not subject to state and federal income taxation. But, if there is no beneficiary, the death benefit proceeds of the life insurance policy may be included in the estate of the deceased. Then, it may be subject to state, federal and inheritance taxes.
Also, the proceeds may be subject to federal estate taxation.
If you own all or part of the life insurance policy at the time of your death, the proceeds may be included in your gross estate for federal estate tax purposes.
Also, federal gift taxes and state inheritance taxes may apply to life insurance policy proceeds under certain circumstances.
You may want to consult a tax advisor regarding your questions about any estate, income and gift taxes related to any life insurance policies you own or are considering buying.
Also, your insurance agent should be able to tell you if your life insurance policy benefits will be taxable.
Finally, different taxes may apply to the benefits paid by your life insurance policy if the death benefit is paid to the beneficiary in installments, instead of as a lump sum. The interest portion, if any, of each installment is usually treated as taxable to the beneficiary at ordinary income tax rates, while the remaining principal portion is tax-free.
I hope that helps! Best of luck to you and your husband. |
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Tan D
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Insurance payout is excluded from the Esate duty. |
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TedEx
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Are you the beneficiary. Or is the estate the beneficiary?
If you are the beneficiary and all is in order, you could have the $$$ in two weeks.
If the estate is the beneficiary, you'll wait for a year if you're lucky. |
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fetchrat
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Income taxes- No
Estate Taxes
Depends on the ownership of the policy and how your bank accounts are set up. If you do not own the policy (your husband is the owner) then you will not have to worry about estate taxes. if you own the policy and the money is paid into a bank account without joint ownership, then it can be rolled into consideration of the estate taxes if the estate is large enough (like 1 or 2 million dollars).
Believe it or not, it is best not to own your own life insurance, but you can help them pay it. |
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CRAIG C
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No |
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vette1
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No |
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mbrcatz
 |
Depends. If he's the beneficiary, then no. If your ESTATE is the beneficiary, well, it depends on where you live. If your ESTATE is the beneficiary, the life insurance payout becomes part of your estate, and subject to any estate taxes that your estate has to pay, BEFORE your heirs can get anything. |
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