Do You Pay Taxes on a Life Settlement?

Are Life Settlement Proceeds Taxable?

In many cases, yes. However, not all of the proceeds are taxed the same way.

How Taxes Are Typically Applied

• Return of premiums: generally not taxed
• Amount above basis: may be taxable
• Additional gains: may be treated as capital gains

Why You Should Plan Ahead

Tax outcomes vary, so it’s important to consult a qualified tax professional.

Next Steps

Estimate your value or learn more.