Arizona life insurance - Arizona term life insurance quote - life insurance Arizona
From a life insurance company you can trust.
Tools and Calculators
Life
Insurance Calculator
Social Security
Calculator
Financial
Calculators
Life
Insurance Articles
TAXATION OF LIFE INSURANCE IN THE U.S.A
Proceeds paid by the insurer upon death of the insured are not includable in taxable income for federal and state income tax purposes; however, the proceeds may be included in the estate of the deceased and subject to federal and state estate and inheritance tax.
Cash value increases within the policy are not subject to income taxes unless certain events occur. For this reason, insurance policies can be a legal and legitimate tax shelter wherein savings can increase without taxation until the owner withdraws the money from the policy.
The tax ramifications of life insurance are complex. The policy owner
would be well advised to carefully consider them. As always, Congress
or the state legislatures can change the tax laws at any time.
