Need Iowa Life Insurance Quotes?

Purchasing life insurance in Iowa is an important matter and as such, it deserves significant thought and consideration. Several factors may affect your decision regarding the type and amount of life insurance that you choose to purchase. Regulations regarding life insurance vary from one state to the next. Be sure to consider the following facts, when considering the purchase of Iowa life insurance.

Insolvency coverage is limited to $100,000 in life insurance cash values, but not more than $300,000 for all benefits in the event that your insurance provider is unable to fulfill your policy.

In terms of debt collection regarding assets, the cash value of a life insurance policy is wholly exempt from claims of the owner's creditors if the beneficiary of the policy is the owner's spouse, child or dependent. The exemption for that portion of an interest in a life insurance policy represented by premiums paid within 2 years of the date of judgment execution is limited to $10,000. The death benefit of a life insurance policy payable to the spouse, child or dependent of the insured is exempt from claims of the insured's creditors, and is exempt from claims of the beneficiary's creditors (for debts arising before the insured's death) $15,000 of the death benefit of a life insurance policy payable to the spouse, child or dependent of the insured is exempt from claims of the beneficiary's creditors for debts arising before the insured's death.

In Iowa, life insurance proceeds are taxed only if the proceeds are payable to the estate of the deceased insured. If the proceeds are payable to someone other than the insured, the proceeds are not subject to tax, no matter who owns the policy. Any portion of the net taxable estate passing to a surviving spouse, parents, grandparents and other lineal ascendants, children (including legally adopted children or biological children entitled to inherit under the laws of the state), stepchildren, grandchildren, great-grandchildren, and other lineal descendants is completely exempt from tax. Transfers involving a deceased's brother, sister, son-in-law, or daughter-in-law are not exempt from tax.

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