Will My Beneficiaries Pay Taxes From My Universal Life Insurance Policy Payout?

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Will my beneficiaries pay taxes from my universal life insurance policy payout?

Will My Beneficiaries Pay Taxes From My Universal Life Insurance Policy Payout?

The money in your universal life insurance account should be tax-deferred while your policy is in effect. If you cancel the policy, then the money you settle from it will be subject to taxation, based on your universal life insurance rate.

However, if you carry your universal life insurance policy through your entire life, then the money your beneficiaries receive could be free from taxes altogether.

   

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