Are Life Insurance Death Benefits Tax-Free?

Are Life Insurance Death Benefits Tax-Free?

Taxes always seem to be on the rise, so it is reassuring to know that life insurance is a rare financial tool where the beneficiaries receive the payout income tax-free.

A major advantage of life insurance is that beneficiary proceeds are exempt from income taxes and estate taxes, so proceeds can be used to offset any tax liability attached to your assets when you try to transfer those assets to loved ones.

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