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The definitions contained herein are for general information only and are not designed for use in connection with the interpretation of any insurance policy or annuity policy issued through Insurance Answer Center.
Life Insurance Glossary Terms  4 A B C D E F G H I J K L M N O P Q R S T U V W Y

Estate Tax

Federal taxes are imposed on the estate of the deceased based on the total value of the estate at the time of death. If there is a beneficiary living when the insured dies, the death benefit is paid directly to the beneficiary under a term, permanent life or deferred annuity policy. If the insured is the owner of the policy at any time within three years of death the death benefit will still be included in the insured's estate for estate tax purposes. Please see your tax advisor for additional information. Also known as Federal Estate Taxes.

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