Readers Question: “Are life insurance benefits taxable in Columbia, South Carolina?”

Did you know that Kristin Davis (Sex and the City) is a native of Columbia, South Carolina.

Answer to Readers Question: Death benefits from a life insurance policy are usually not subject to federal income tax. There are exceptions, though, if the IRS deems your life insurance policy to be an investment in disguise. Your insurance agent should be able to tell you if your policy benefits will be taxable.

One of the still remaining, best aspects of Life insurance, is that the insurance industry has gotten congress to retain that payouts of life insurance to a beneficary are NOT TAXABLE.

That is also why one should always have their life insurance policy payable to a specific benficiary…it passes very quickly, directly to them, outside of the estate and being outside the estate, is exempt from estate/inheritance and transfer taxes or fees.