"April 4, 2022 - An important component of life insurance is the face value, a.k.a. death benefit. This is the amount beneficiaries receive when the insured person dies. If the beneficiary chooses to receive the money in a single lump sum, it’s not taxed. "
Hope everyone has this in their wills...mine does!!!
NOTE: When my wife died, I called the life insurance company about the policy and the first question was "MONTHLY PAYMENTS FOR LIFE" or "LUMP SUM"?
IF taking monthly payments, the INSURANCE COMPANY IS MAKING BOOK ON THE UNPAID BALANCE!!!
I could be wrong but this is how we set it up...we both worked in the Financial Services field..
AND it is TAX FREE if the insurance is done right:
https://www.prudential.com/financial-education/how-is-life-insurance-taxed
"April 4, 2022 - An important component of life insurance is the face value, a.k.a. death benefit. This is the amount beneficiaries receive when the insured person dies. If the beneficiary chooses to receive the money in a single lump sum, it’s not taxed. "
Hope everyone has this in their wills...mine does!!!
NOTE: When my wife died, I called the life insurance company about the policy and the first question was "MONTHLY PAYMENTS FOR LIFE" or "LUMP SUM"?
IF taking monthly payments, the INSURANCE COMPANY IS MAKING BOOK ON THE UNPAID BALANCE!!!
I could be wrong but this is how we set it up...we both worked in the Financial Services field..