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I recently upped my term life insurance to $1 million. Should I be concerned about that money getting taxed for my beneficiary if something were to happen to me?


The silver lining of that otherwise dark cloud is that proceeds paid on a life insurance policy to a beneficiary in a lump sum due to the death of the policyholder are not subject to federal or state income tax. The “lump sum” part is important because if you have an annuity contract that makes monthly payments instead of disbursing the money all at once, then the part paid out beyond the face value of the contract is deemed to be taxable interest. All in all, though, you’re better off eating right and exercising so that these details become moot.

-Conrad de Aenlle