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Level 1
April 24, 2024
Question

Life insurance

  • April 24, 2024
  • 1 reply
  • 12 views

Me and all extended family live in Texas. My mother-in-law is diagnosed with terminal cancer. She has a Single Payment Interest Sensitive Whole Life policy. Does the benefit count as ordinary income to the beneficiary?

1 reply

PatriciaV
Level 15
April 24, 2024

No. Life insurance benefits are not taxable income to the beneficiaries.

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