Yes you will be required to pay taxes. Taxes will need to be paid, especially if you withdrew the money from a qualified policy or have received it as an annuity. This type of income will be listed as additional income for taxation purposes and your insurance carrier should give you a 1099 as a result.
This is incorrect. You will not have to pay taxes on payout resulting from death. You would pay taxes on a policy where you withdrew money for personal use. add a comment