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Is Life Insurance Taxable in 2016?

Is Life Insurance Taxable

Is Life Insurance Taxable in 2017? Generally speaking, NO.  Life insurance proceeds are income-tax free in 2017. For example,  if you have a $500,000 life insurance policy and you pass away, your beneficiaries will receive the full $500,000 and it will NOT be taxed.  This is one of the great advantages of life insurance as it is one of the few items that remain tax-free for most people. Estate Taxes However, if you have a large estate ($5.49 million per individual in 2017) your entire estate including the life insurance proceed is subject to the federal estate-tax which is currently […]