Life Insurance sold for cash

[Bjorn]

What is the taxable treatment of life insurance being sold for cash?
Mahalo
Bjorn

[JG EA]

If you mean

Life Insurance cashed out - then it's taxable if over what's been paid in premiums over the years.

[jainen]

non-taxable

>>life insurance being sold for cash<<

There are two versions of this, both used by terminally ill patients. The life insurance company itself my offer an early payout of about 90% of face value, which is non-taxable. Private companies offer 50% of face value in exchange for being named beneficiary, and this is also non-taxable.