A terminally ill insured may be able to withdraw life insurance death benefits on tax-free basis while still alive.

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According to the IRS, life insurance death benefits are generally not taxable as income. This means that a terminally ill insured may be able to withdraw these benefits on a tax-free basis while still alive. However, there may be certain situations where a portion of the benefit is subject to taxation, so it's important to consult with a tax advisor for specific guidance.

A Terminally Ill Insured May Be Able to Withdraw Life