| Life Insurance Calculator |
Life insurance proceeds received
after the death of the insured are
not subject to income tax.
However, many people surrender
their policies for cash surrender
value or sell them in the life
settlement market. Both
of these types of transactions
are taxable events for income
tax purposes.
See our website page on life
on the tax rules for these trans-
actions. The tax treatment
differs for whole life versus
term life, whether it is sold
or surrendered, and also
whether the insured indi-
vidual is terminally or
chronically ill.
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You do have cost basis in the life
insurance contract which you can
use to reduce your taxable gain.
Click on the image of the life
insurance calculator to the right
for help in calculating your
taxable gain and after-tax sales
proceeds.
Know what your after-tax sales
proceeds will be before you make
a decision to sell or surrender your
policy.
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| Life Insurance Calculator |
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