by VIJAYRAJ » Sat Jan 17, 2009 05:01 am
In my state there was no tax on the amount gained after maturity of policy.
But now I will have to make room for this while calculating as the ministry is planning for some tax provisions within a year or two.
Also if I withdraw a partcular amt at a time, it adds a tax of 4% which is much high if I withraw money within a day after maturity of policy.
Fortunately there are tax exemptions on a particular amount of investments on policies.
Any such issues in the US?
But now I will have to make room for this while calculating as the ministry is planning for some tax provisions within a year or two.
Also if I withdraw a partcular amt at a time, it adds a tax of 4% which is much high if I withraw money within a day after maturity of policy.
Fortunately there are tax exemptions on a particular amount of investments on policies.
Any such issues in the US?
Posted: Sat Jan 17, 2009 09:02 am Post Subject:
Life insurance proceedings are tax free in USA. And I guess its the same everywhere. However, the insurance experts will shorts around with more insight.
Posted: Sat Jan 17, 2009 10:25 pm Post Subject:
Where are you located?
Posted: Sun Jan 18, 2009 12:37 am Post Subject:
VIJAYRAJ in the USA the cash value grows tax deferred.
The beneficiary receives the death benefit income tax free.
If you realize a gain in the policy and surrendered the policy for its cash a person in the USA would have to pay ordinary income tax on the gain.
The dirty little secret regarding life insurance death benefits in the USA is the fact that those same proceeds that were received by a spouse INCOME TAX FREE are included in that person's estate for Federal Estate Tax purposes when the second spouse dies.
In the USA agents affectionately refer to this as TAXATION WITHOUT RESPIRATION.
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