Are There Tax Benefits Associated With Life Insurance?
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Written by
Jeffrey Johnson
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UPDATED: Jul 16, 2021
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There are two important tax advantages associated with life insurance.
The first tax advantage is that death benefits are generally not taxable as income for income tax purposes for a person named as the beneficiary.
The second tax advantage is that for cash value plans, there is generally no tax on the increase in the cash value as it grows over time.