Question
Veteran's Insurance Payout to Policy Owner
Does anyone know if a veteran who has a VA matured endowment life insurance policy with a policy number that begins with a "V" (Veteran's Group Life Insurance "VGLI"), and has reached the age of 96, has to pay tax on a lump sum one-time proceeds payout? The amount being paid is approximately $60,000 on a $10,000 insurance policy. The veteran has continued to pay premiums throughout the life of the policy, and has reinvested the dividends paid on the policy.
