1. 170 POINTS
    Steven Gates
    Sr. Advanced Markets Consultant, Ash Brokerage, Greater NYC Area
    The wording suggests the question concerns income tax reporting. Life insurance death benefit proceeds are usually exempt from income tax.

    There are exceptions. In some cases where a policy is owned by the insured's employer, the proceeds may be taxable income. The proceeds may also be taxable if the policy (or death benefit) was sold or otherwise transferred in exchange for valuable consideration. If a policy is owned by a qualified plan, the death benefit will not be taxable when paid to the plan but would be taxable to the plan beneficiary when withdrawn.
    Answered on September 5, 2013
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