Beneficiaries of a life insurance policy are the people designated by the ownder of the life insurance policy to receive the death benefit proceeds if the insured person dies.
If, for instance, you are named as the beneficiary of a $100,000 life insurance person, and the person who is insured by the policy dies, you would receive the $100,000 death benefit, subject to any exclusions in the policy.
Usually, if an individual is named as a beneficiary, there is no federal income tax paid on the benefit. However, if the estate is named as the beneficiary, there are usually estate taxes to pay on the proceeds from the death benefit.
Here's how you can learn more about the beneficiary of a life insurance policy.
If, for instance, you are named as the beneficiary of a $100,000 life insurance person, and the person who is insured by the policy dies, you would receive the $100,000 death benefit, subject to any exclusions in the policy.
Usually, if an individual is named as a beneficiary, there is no federal income tax paid on the benefit. However, if the estate is named as the beneficiary, there are usually estate taxes to pay on the proceeds from the death benefit.
Here's how you can learn more about the beneficiary of a life insurance policy.
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