Are life insurance proceeds taxable for the care of an individual in a nursing home?

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1106248

2026-04-30 06:00

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if they are death benefit proceeds no. if it is cash value proceeds then any withdrawals over the premiums paid are taxable, any loans on the cash value are not taxable. if it is a hybrid/combo life/long term care policy, then no they are not. all of this is assuming that the policy was paid with after tax dollars, not pre tax.

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