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The Hidden Tax Trap in Life Insurance: Is your family's payout safe from the IRS? Most people assume life insurance death benefits are always tax-free. They are... if done correctly. This video shows the nightmare reality of poor planning. The main culprits for taxation on a death benefit include: Improper Ownership: If you own the policy on your own life, it can be included in your taxable estate. Transfer-for-Value Rules: Selling a policy can cause a huge tax liability. Complex Permanent Polic
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