Hi,
I am enquiring about the following situation.
If my mother has a life insurance policy (not through super) and has nominated myself as a beneficiary. Will that benefit amount be taxable since I am non financial dependent?
Hi @Dellymao
If you have life insurance held outside a superannuation fund, then generally proceeds from the policy are not taxable if paid to the original owner of the policy or someone that acquired their interest in the policy for no consideration.
Where the life insurance policy in question commences after 7 December 1983, amounts received by way of bonuses under that policy are assessable in full in the first 8 years after the policy commences and in years 9 and 10 of the policy, two thirds and one third respectively of the bonus is assessable. For a policy held for more than 10 years, no part of the reversionary bonus is included as assessable income.
Hope this helps 😊
Hi @Dellymao
If you have life insurance held outside a superannuation fund, then generally proceeds from the policy are not taxable if paid to the original owner of the policy or someone that acquired their interest in the policy for no consideration.
Where the life insurance policy in question commences after 7 December 1983, amounts received by way of bonuses under that policy are assessable in full in the first 8 years after the policy commences and in years 9 and 10 of the policy, two thirds and one third respectively of the bonus is assessable. For a policy held for more than 10 years, no part of the reversionary bonus is included as assessable income.
Hope this helps 😊
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