Chicago, IL (PRWEB) April 25, 2014
YourLifeSolution.com, a service which touts online life insurance quotes, is today outlining the tax liability which exists under multiple scenarios in regards to life insurance. "So, in virtually all cases, the death benefit under a life insurance policy is tax-exempt. This is with only a few notable exceptions. I felt the need to put out a release about this since the question 'is life insurance taxable?' comes up a lot," said Eric Smith, the founder and independent life insurance agent of YourLifeSolution.com.
Scenarios Where Life Insurance is Tax-Exempt
-The policy was purchased and the owner nor beneficiary have been changed within three years of death
-The policy is payable to a spouse
Scenarios Where Life Insurance Death Benefits are Taxable
-When a business purchases a life insurance policy and deducts the premiums from their taxes
-When the death benefit is payable to the insured's estate it can generate estate taxes (The current estate tax exemption is $5.34 million)
Readers looking for more information on term or permanent life insurance products are encouraged to visit YourLifeSolution.com, or call Eric Smith at 888.374.2764.