Life Insurance Payouts Are Tax-Free
Overview
If you die while your life insurance policy is active, your beneficiaries will receive a lump payment of death benefit. This death benefit is not considered income, and, therefore, is not taxable when filing tax returns.
Life Insurance Can Cover Final Expenses
Overview
Funeral expenses can amount to thousands of dollars. Luckily, your life insurance can help your family avoid the burden of having to cover the burial costs. If you have a life insurance policy, your beneficiaries can simply use your death benefit to offset your funeral cost.
