Reader’s Question:

Are life insurance taxable in New York? Apparently, my mother in law says that the IRS is claiming she has to pay taxes for the 50,000 life insurance that she received when my father in law passed away.

Lorie

New York, NY

Hello there, Lorie!

No, life insurance are not taxable in New York. Your mother in law was probably mistaken by thinking that was your father in laws life insurance. Though, I should also mention that there are a few exceptions to this. IRS can impose tax if it was considered a form of investment in disguise. The ‘tax’ she is talking about will probably be an estate tax. In this case then, the death benefit which was given to your mother in law gets added to the value of the estate of your father in law. Or, maybe it became taxable under the State inheritance taxes. Now, another angle is that the life insurance becomes taxable as the income of the holder if the life policy has the feature that enables the policy holder to withdraw a potion of the cash values gained by the policy.

But technically speaking, life insurance death benefit proceeds are always tax free if it is paid to a natural person. It will become taxable only if there was a collateral assignment on the policy to secure a loan. Like if you want to loan $1 million from a bank, the bank would want a collateral, which can be a part of your life insurance policy in case you die before the loan is paid.

Reader question:

I only smoke a cigar maybe two, three times a year. You know, for celebrations. My candidate one, somebody had a baby, somebody graduated, my birthday. But someone tells me that I need Rochester NY smoker life insurance. How does that even make sense?

Greg

Glad you asked, Greg.

No, it can seem pretty nonsensical if you pick up a cigar fewer times a year than you have fingers on one hand, but the truth is that almost every life insurance company out there will stamp you as a smoker for it and charge you for Rochester NY smoker life insurance. Really, though, you have to consider that smoking a cigar is in many ways a lot worse than smoking a cigarette. Even though there’s only one cigar, it’s got the same chemicals as about an entire package of cigarettes. While three packs in a year still isn’t much, it is also considered to place you in smoker status.

Even if you had only smoker one cigar in the past year, you would still have to pay for Rochester NY smoker life insurance. You have to have done no smoking for 12 months in order to get out of that. Even so, since you smoke so rarely, you might be able to get away with saying that you don’t at all. There is some risk in that if you’re found out, your policy will be canceled, even if the company finds out post mortem. But considering how hard it would be to verify that you smoker three times a year, it might be worth the savings, considering that they can only cancel or eny benefits within the first 2 years.

take care,

Fashun

Reader question:

I am looking at my Buffalo NY instant life insurance coverage form online, and have already filled one part out, but there is another which I’m supposed to have a doctor fill out. Can you explain this to me?

Jesse

Glad you asked, Jesse.

Well, the second part of the form for your Buffalo NY instant life insurance coverage will be for the medical exam which your insurance company needs in order to rate your policy based on your health. You can do two things now–you can either schedule an appointment with a physician at a clinic which the life insurance company chooses, or you can schedule a visit for a physician to come to your home and check you out. Either way, you aren’t paying. The insurance company is.

The average test for the medical exam for Buffalo NY instant life insurance coverage is pretty quick and simple. You sit down with the physician and they get information about your medical history and your family’s medical history. They look at how tall you are, how much you way. They take your blood pressure as well as your pulse. They also get blood and urine samples from you.

This won’t be the test every time. Sometimes, if you intend on purchasing a very large amount of Buffalo NY instant life insurance coverage, or if you are older, then there will be more involved in the process.

take care,

Fashun

Reader question:

I have been undergoing treatment with a psychiatrist for some mental issues I have, and taking medication. I also drink pretty regularly. Will these require me to get an Albany NY no exam life insurance policy instead of a regular one?

Alan

Good question, Alan.

It’s very likely that the combination of these problems of mental illness and drinking could cause you to need an Albany NY no exam life insurance policy, but not in every case. For one, it depends on the seriousness of each particular issue. If you have very serious mental problems, such as having had a suicide attempt or having been taking medication and undergoing treatment for a long time, then you are already going to have a hard time finding good rates, even if you do keep your illness under control.

Likewise, you might be okay, without the menta illness, if you only have a drink from time to time. However, if you drink a lot and even so much as to be considered an alcoholic, then you will have an even harder time.

Put them both together, and it’s likely that you will have to buy an Albany NY no exam life insurance policy. That is, if you can get insured at all. Try shopping around and talking with an impaired-risk advocate to find a company that will take you.

take care,

Fashun

Reader question:

I have a pretty serious history of mental health problems. I tried to commit suicide a few years ago and have been taking medication ever since. I’m thinking that the cheapest New York NY life insurance quotes online are completely out of my reach, but am I right?

Jasmine

Great question, Jasmine.

Even though you have attempted to commit suicide in the path, the cheapest New York NY life insurance quotes online might still be availble to you, although it isn’t certain. It’s a good thing that you say a few years, for it’s best to hold on for at least tw years after you have tried to commit suicide before applying for life insurance. Your chances for getting good rates get better after those two years.

However, if you have a suicide attempt, or even more than one, then your life insurance companies will be much more vigilant about your application, and much more likely to charge you higher rates. If you want to still get the cheapest New York NY life insurance quotes online, then you have the burden of proof to show them that you have been undergoing treatment for your mental illness, and that you are stable.

Stability is the main thing. If you can hold down a job, go to your doctor’s appointments, pay your bill, go to school, and so on, then you have a lot of proof backing you up that you aren’t a risk. However, if you get too depressed to work often, have to be hospitalized, and so on, then it’s harder.

take care,

Fashun