The Tax Questions Blog

Posts Tagged ‘taxable insurance settlements’

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Question: Are accelerated insurance benefits taxable?

I recently received an accelerated benefit due to cancer from a life insurance policy and wanted to know if it is taxed.

Answer: Insurance benefits should not be taxed. It is the benefit you are buying from the insurer based on the contract policy when the insurer sells you an insurance. It is seller insurer therefore who will be taxed the moment you buy or paid the contract policy. In business including insurance business, it is the seller that is being taxed not the buyer.

Mary Holm: Bank bashing proves too hasty

I have had a considerable sum of money on term deposit in Westpac. The term ended on a Saturday but none of the money reached my bank account until Tuesday. All my money, principal and interest, "disappeared" for three days.Where...

The role of life insurance in your estate and financial planning, Part 2 of 3