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Is there a tax on money received from life insurance if paid to the insured?
Wiki User
∙ 13y ago
The only case where the insured can collect on their life insurance is with a whole life policy. In that instance any interest or dividends are taxable.
Wiki User
∙ 13y ago
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Do you have to pay debts with money received from a life insurance policy?
You may wish to contact an attorney on this issue and I am not an attorney. But here goes. If the proceeds from a life insurance policy were designated to an individual and this person had no liability for the debts then the money would not have to be used to pay debts that solely belonged to the deceased. If the beneficiary of the life insurance policy was the "Estate of Insured" then the debts of the insured would have to be paid from the policy proceeds.
Do you pay tax on money received from spouse life insurance?
Life insurance proceeds are received income tax free; how the money is taxed afterwards depends upon how and where it is invested.
Who is the principal in a life insurance contract?
The Insured of the policy is obviously the Principal in a life insurance contract.
What is the difference between term and whole life insurance if there is any?
The difference between term life insurance and whole life insurance is that a term policy covers the insured for a "term of years" whereas a whole insurance policy covers the insured for the entire life period.
Does the beneficiary of a life insurance policy have to pay taxes on the proceeds?
The answer to the question of whether or not beneficiaries have to pay taxes on the money received from life insurance policies is: no they will not have to.
Can you explain life insurance in very simple terms?
Very basically, insurance is a contract (called an insurance policy) between one party (the insurance company) and another (the insured). In the case of life insurance, it is a life that is being insured. In return for the periodic payment of money (called a premium) to the insurance company, the insurance company agrees to pay a sum of money when the insured (whose life is insured) dies. The money is generally paid to the person (or sometimes an entity, such as a charity) that is designated in the insurance policy as the beneficiary. The beneficiary is designated by the insured when the insured buys the insurance but can usually be changed up until the time of death.
Do you have to pay debts with money received from a life insurance policy?
You may wish to contact an attorney on this issue and I am not an attorney. But here goes. If the proceeds from a life insurance policy were designated to an individual and this person had no liability for the debts then the money would not have to be used to pay debts that solely belonged to the deceased. If the beneficiary of the life insurance policy was the "Estate of Insured" then the debts of the insured would have to be paid from the policy proceeds.
Who receives the benefits or money from a life insurance pplicy upon the death of the insured?
Upon the death of the insured, the person or persons selected as the receiver of benefits in the contract receives the benefits or money from a life insurance policy.
If a beneficiary of a life insurance policy dies before the insured what happens to the money once the insured dies?
Goes to the beneficiaries heir's or estate.
Do you pay tax on money received from spouse life insurance?
Life insurance proceeds are received income tax free; how the money is taxed afterwards depends upon how and where it is invested.
Who receives life insurance money if no benificiary is named?
If no beneficiaries are named on a life insurance policy, or all named beneficiaries are deceased, then benefits will be paid to the insured's estate.
Who receives the money from life insurance if the beneficiary is deceased the insured or the heirs?
The contingent beneficiary, if one was named.
When your parent die are you entitled to money from the government?
You are not necessarily entitled to money from the government, but you are entitled to the amount of life insurance that you parent or parents are insured for.
Is life insurance an asset of the insured?
Yes, if the insured is also the policy owner.
Does a will affect life insurance proceeds?
A will does not normally change a life insurance policy. The policy is a contract between the insured to pay a beneficiary. If the policy leaves the money to the estate, the will then controls the dispensation.
Who is the principal in a life insurance contract?
The Insured of the policy is obviously the Principal in a life insurance contract.
Life insurance insurability?
The beneficiary has to have an insurable interest in the insured. The insured has to pass certain qualifications in order to be insured.
