Is Life Insurance Taxable To The Beneficiary In Illinois?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    In Illinois, as in every other state, life insurance is not taxable to the beneficiary for income tax. The only portion of life insurance that may be charged income tax is excessive cash value. Estate taxes may need to be paid from the proceeds if there is a very large estate. Otherwise, life insurance proceeds are not usually taxable to the beneficiary in Illinois.
    Answered on August 16, 2013
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  2. 29 POINTS
    Thomas McGill
    Licensed Benefit Advisor, GoHealth,
    Life insurance proceeds are not taxed. The proceeds are directed to the named beneficiary. This is also a great option for estate planning. Tangible assets depending on how it's structured, may be taxed. It's best to meet with a licensed professional to design a program that can eliminate taxes to be paid. Life insurance can offset any taxes to be paid.
    Answered on May 19, 2014
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