Tax Facts

64 / Is the death benefit under the double indemnity clause of a life insurance policy subject to federal income tax?

Updated: October 02, 2024 at 01:55 PM
No. The death benefit is generally tax-exempt as proceeds payable by reason of an insured’s death.1 If the proceeds are held under a settlement option, the regular rules apply ( Q 70, Q 71).




1.     IRC § 101(a); Treas. Reg. § 1.101-1(a)(1).


Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.