FAQ

How much tax is taken out of life insurance payout

At Aflac, we write thousands of life insurance policies each year. We know all the common questions about life insurance, including how life insurance premiums and payments work with taxes. in most cases there is no tax on life insurance payouts.1 however, we recommend that you speak with a tax professional to make sure all of your bases are covered. There are some cases in which the beneficiary can be taxed. Most commonly, the cash value of life insurance is taxable when the inheritance is a particularly large sum.

types of life insurance taxes

There are certain cases where your life insurance payment is taxable. To protect your policy, here is a list of different types of life insurance taxes:

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