Skip to main content

Tax Treatment of Life Insurance Proceeds ON DEMAND

Available Until

Your Desk

2.0 Credits

Member Price $58.00

Non-Member Price $67.00


Understanding the tax implications of life insurance proceeds can be complex and challenging, posing a problem for professionals in tax, accounting, and finance. The intricate rules and exceptions in the Internal Revenue Code, such as Section 7702 and the modified endowment contract (MEC) rules, often agitate this complexity. This course offers a solution by providing a comprehensive guide to the tax treatment of both death and living proceeds from life insurance contracts. Paul Winn delves into critical topics like the statutory definition of life insurance, the taxation of policy loans and withdrawals, and the tax consequences of non-compliance. By the end of the course, participants will be well-equipped to navigate these complex tax scenarios, ensuring accurate and efficient handling of life insurance-related tax matters.


Life insurance death benefits. Life insurance policy living proceeds.



Designed For

CPAs, financial professionals, enrolled agents and attorneys.


Compare the customary income tax treatment given to life insurance policy death benefits with the income tax treatment given to such benefits under a life insurance policy transferred for a valuable consideration. Calculate the taxable portion of life insurance death benefits under a policy included in a qualified plan. Identify the tax treatment of death benefits received as periodic payments under a supplementary contract. Define the terms ‘terminally ill’ and ‘chronically ill’ as used in the Health Insurance Portability and Accountability Act. Identify the income tax treatment of accelerated death benefits and viatical settlements. Recognize the customary income tax treatment given to life insurance policy withdrawals, loans, and surrender proceeds. Identify the changes to the tax treatment of life insurance policy living proceeds resulting from the policy being deemed a modified endowment contract. Identify the types of life insurance exchanges that are tax-free under IRC Section 1035. and Recognize the income tax treatment of life settlements.






Leader Bios

Paul Winn, Western CPE

Paul Winn CLU ChFC is a writer with more than 30 years experience in the life insurance and securities industry as an agent/registered representative, an agency head, a marketing vice president for a life insurance company and the president of a corporate registered investment adviser. He was a long serving member of the advisory board to the New York State insurance department. He is a published book author and creator of more than 200 taxation, insurance and securities training courses.

Return to Top

Non-Member Price $67.00

Member Price $58.00