How Income Annuities are Taxed - and Why
As you know, things sometimes don't work out the way you plan. People die too young or need professional care after an illness or disability. Sometimes, just living to a nice old age drains the savings you worked so hard to bank.
That's why people who care about their families and themselves buy insurance to address these life risks. And believe it or not, the government occasionally recognizes -- and rewards -- those of us who plan ahead for the unexpected. Life insurance is one example: Payouts to beneficiaries are received income tax free.
Longevity insurance -- in the form of income annuities -- also receives some tax benefits. (Those benefits could and should be better, however, as we will
