Is Life Insurance Taxed In South Carolina?
- 1165 POINTSview profileChris AbramsFounder, Abrams Insurance Solutions, Inc., San Diego, CAThe death benefit is not subject to income tax in any state if it is received as a lump sum. Some life insurance companies may offer a larger amount if the benefit is received over time, and in that case, the additional amount received over the base benefit is subject to income tax. Estate taxes might apply.Answered on August 15, 2013flag this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.Life insurance in South Carolina is not charged income tax if left to a beneficiary other than the estate. If the policy is cashed in before death and the money in the policy is more than the face amount, the excess can be taxed. Interest on the money paid out to the beneficiary is also taxed, when paid out on a payment plan.Answered on August 30, 2013flag this answer
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