1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    In most scenarios  the death benefit proceeds are paid to the beneficiaries of life insurance policy tax free. There may be some tax exposure in business and estate scenarios. But the government made a decision a hundred years ago that life insurance presented a social good that warranted the tax preference.
    Answered on September 3, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Life insurance started as a financial vehicle to protect widows and orphans. It was determined to not tax those proceeds, as they in fact saved the government money that would have gone to caring for those who had lost spouse or parents, had they not had life insurance. Since then, life insurance is used for many more purposes, but is still seen as a benefit that should remain tax free due to its alleviation of financial devastation for survivors at the time of death.
    Answered on September 3, 2013
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