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lanakw
New Member

Life Insurance policy pay out

Is the distribution payout from a parents life insurance policy considered as income, is it taxable?
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Accepted Solutions
Howard1948
Level 7

Life Insurance policy pay out

The payout of the proceeds from a life insurance policy following the death of the insured is NOT taxable income to the beneficiaries.  Part of the payout may consist of interest from the date of death to the date of payment and, if so, that interest is taxable income.

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Howard1948
Level 7

Life Insurance policy pay out

The payout of the proceeds from a life insurance policy following the death of the insured is NOT taxable income to the beneficiaries.  Part of the payout may consist of interest from the date of death to the date of payment and, if so, that interest is taxable income.

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