Life insurance loans are income tax-free.

Name: Life insurance loans are income tax-free.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When you borrow money from your life insurance policy, it is not considered income and therefore is not subject to income tax. This is because the loan is considered a loan against the policy's cash value, which is already considered tax-free. However, it's important to note that interest on the loan may be subject to tax.

Life Insurance Loans Are Income Tax-Free