Do I need to pay taxes on a life insurance payout?

BRIAN ACTON | February 19, 2019

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Life insurance policies name a designated beneficiary or beneficiaries to receive a payout, or death benefit, in the case of the policyholder’s death. The beneficiary will then file a claim with the life insurance company to receive their payout when the insured dies (here's how that works). If you received a life insurance payout last year, you probably made more money in 2018 than you were expecting. You may be wondering how to handle that unexpected windfall when it comes to filing your tax returns. Here’s what you need to know.

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Cook Maran & Associates

Cook Maran is a leading full-service insurance agency staffed by more than 200 experienced insurance professionals and licensed in 50 states. Ranked as one of the top privately held insurance brokerages in the US, the firm provides a full range of personal and commercial insurance services, employee benefits, surety, and credit risk solutions. Cook Maran became part of Prime Risk Partners family in 2015. Joining Prime Risk Partners allows us to provide our clients with a broader array of services and resources, expanded specialty offerings, greater market access, and the comfort of knowing we have the strength of our thriving national organization supporting us.

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