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Category:Life Insurance110
Taxes & Estate Planning in Life Insurance
11 articles found
Life InsuranceAre Life Insurance Premiums Tax Deductible?
For personal life insurance policies, premiums are not federal-tax-deductible. The exceptions are narrow but specific: business-owned life insurance used as a documented compensation tool, alimony-required policies issued under pre-2019 divorce decrees, premiums paid by a 501c3 charity that owns the policy, and group life insurance up to $50,000 per employee under IRC Section 79. This guide walks through each exception, the IRS rules that govern it, and how to structure the policy correctly so the deduction is defensible on audit.
Brian Greenberg•Updated Jun 2026
Life InsuranceIs Life Insurance Taxable? Payouts, Cash Value, and More
For the vast majority of beneficiaries, life insurance death benefits are federal-income-tax-free under IRC Section 101(a) when paid as a lump sum to a named beneficiary. However, there are five specific situations where part or all of a life insurance payout becomes taxable: the transfer-for-value rule, federal estate tax inclusion, interest earned on deferred installments, Modified Endowment Contract (MEC) classification, and cash value withdrawals above the cost basis. This guide walks through each scenario with examples, the IRS code section that governs it, and the structures that avoid each tax trigger.
Brian Greenberg•Updated Jun 2026
Life InsuranceViatical Settlement Guide and Calculator
A viatical settlement is a transaction in which a chronically or terminally ill life insurance policyholder sells their life insurance policy to a third-party investor for a lump-sum cash payout. The proceeds are typically income-tax-free under IRS Section 101(g) and can be used for medical care, debt, or any other purpose.
Brian Greenberg•Updated Jun 2026
Life InsuranceIs Life Insurance a Business Expense?
While business owners can technically deduct life insurance premiums as an expense, it is a bad idea.
Brian Greenberg•Updated Feb 2023
Life InsuranceCollateral Assignment of a Life Insurance Policy
A life insurance policy holds value aside from the obvious purpose. You can also use it as collateral to secure a loan.
Brian Greenberg•Updated Nov 2022
Life InsuranceLife Insurance in an Irrevocable Trust - How Does It Work
Ensure that your policy is used in the best way to benefit your dependents.
Brian Greenberg•Updated Sep 2022
Life InsuranceWhat Is An Irrevocable Life Insurance Trust?
An irrevocable life insurance trust is a non-amendable legal structure. Learn more about how it's used and when it is applicable.
Brian Greenberg•Updated Jul 2022
Life InsuranceLife Insurance to Secure a Small Business Loan
Did you know that if you want a small business loan, you’ll almost certainly need to get life insurance? The connection isn’t obvious, and many business loan applicants don’t realize the insurance requirement exists until it’s almost too late.
Brian Greenberg•Updated Jul 2022
Life InsuranceBuy-Sell Agreement Life Insurance
A buy-sell agreement funded with life insurance will give you the confidence that your business and your family will be taken care of in your absence. Plus, the cost is small compared to the benefits.
Brian Greenberg•Updated Jul 2022
Life InsuranceImputed Income Life Insurance: What You Need to Know
Learn more about what GTL imputed income means, how the IRS computes taxable income in life insurance, and the different categories of imputed income.
Brian Greenberg•Updated Jul 2022
Life InsuranceWashington State Long-Term Care Tax
WA Cares Fund is a long-term care insurance tax of .058% of gross wages of workers in the state of Washington. November 1, 2021, is the deadline to avoid the new tax by purchasing a private long term care policy.
Brian Greenberg•Updated Jul 2022