If the proceeds of a life insurance policy are paid to the estate of an insured individual, then these proceeds will be __________.

Question

Quizplus · Accepted Answer

If the proceeds of a life insurance policy are paid to the estate of an insured individual, then these proceeds will be fully subject to estate taxation upon the death of the insured. Estate taxation of the proceeds from a life insurance policy primarily revolves around how the policy is owned as well as how the proceeds will be paid out.

If the Proceeds of a Life Insurance Policy Are Paid