When is life insurance taxable?
CBS News · Aly J Yale ·
Life insurance isn't usually taxable, but there are some occasions when you or your heirs may wind up with a bill.
Life insurance can be a game-changer, providing much-needed financial support when a loved one dies. But many beneficiaries often wonder if that money comes with a tax burden.
In most cases, it doesn't, as the payout is not considered a part of the beneficiary's taxable income. There are some rare instances in which you may owe taxes on a life insurance payout, though.
Below, we'll break down what you need to know about the taxability of life insurance and what it may mean for you and your loved ones.
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