Originally Posted by
Gunfighter
Income tax free.
It can still be subject to state and federal estate taxes. IMHO the "tax free" death benefit is an overhyped non-benefit.
The estate tax exemption for a single person is about $13 million this year. Hard to imagine more than a few outliers with estates that large passing away while still active here with the company provided insurance.
And if the $1.1 million was your only income, your estate saves $365k on federal income tax.