Example: Imagine you have a $500,000 permanent life insurance policy, and you borrow $10,000 to cover a medical expense. If you repay this $10,000 loan, along with any interest, your policy’s ...

Since coverage amounts can be very high—into lakhs—it’s a significant advantage that the life insurance payout is tax-free. But some aspects of life insurance won’t get past the taxman.

In 2025, you can leave up to $13.99 million of property at death to your heirs, including the life insurance payout, without owing estate taxes. For this reason, most heirs receive everything tax ...