Lifetime income? Tax deferral? What you should know about annuities

  Whether it’s lifetime income, tax deferral or the prospect of protection from falling markets, an annuity can sound like a good idea for many investors. But clients ought to bring plenty of questions and some skepticism to the table before they commit. “We know that there are people in this industry who have annuities in their bag, and if you have a hammer, everything looks like a nail,” said Skip Schweiss, managing director of retirement plan solutions and advisor … Continued

Myth: Life Insurance is NOT Taxable

  You may think that life insurance is tax-free. Unfortunately, the “no tax on life insurance” idea is only partly true: Life insurance is income tax-free. In other words, recipients of a decedent’s life insurance policy do not have to pay income tax on that sum. However, if it’s large enough, the decedent’s estate — including any life insurance proceeds — could be subject to federal and/or state estate taxes. As an example, let’s say you have a $1 million … Continued

15 little-known life insurance tax facts | LifeHealthPro

  1. Can a taxpayer deduct interest paid on a loan to purchase or carry a life insurance, endowment, or annuity contract? Interest paid or accrued on indebtedness incurred to purchase or continue in effect a single premium life insurance, endowment, or annuity contract purchased after March 1, 1954, is not deductible. For this purpose, a single premium contract is defined as one on which substantially all the premiums are paid within four years from the date of purchase, or … Continued

Life Insurance Proceeds Aren’t Taxable, Most of the Time – NerdWallet

  Life insurance can give your loved ones financial security should you die. In most cases life insurance proceeds are not taxable, so your beneficiaries should get the full amount available under your policy. There are certain circumstances in which life insurance benefits may be taxable, but generally they apply only to permanent life insurance policies, such as whole life, or to individuals with very large estates. Life Insurance Proceeds Aren’t Taxable, Most of the Time – NerdWallet

Life insurers treat e-cigs just like other cigarettes | LifeHealthPro

  Does puffing on an e-cigarette count as smoking? As far as life insurance companies are concerned, it does. A lot of smoke is blown in the running battle over electronic cigarettes. Companies selling e-cigs are promoting them as quitting aides or less harmful alternatives to burning tobacco. Public health advocates urging tighter restrictions say the nicotine vaporizers may carry unknown risks and turn children on to old-fashioned cigarettes. A good way to clear the haze is to ask the … Continued