101(g) – Are Life Settlements or Viatical Settlements Taxable?

Often, the biggest hurdle in pursuing the sale of a life insurance policy revolves around the potential taxation of any proceeds from the transaction. To make a fair and accurate analysis of any life settlement options, policy owners and insureds must understand how the transaction can impact their bottom line. Furthermore, like most things related to the tax code, the answer is not always simple.

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Man preparing for a life settlement
Man smiling after completing his life settlement