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Explore our comprehensive coverage options and discover how we can help protect your loved ones' future.
In Texas, life insurance is regulated by state laws to safeguard consumers' interests. While the specifics may vary, meeting the minimum requirements to ensure your loved ones are adequately protected is crucial.
That said, the Texas Supreme Court recently affirmed that the intent to deceive standard still applies in the state. Consequently, a life insurance company cannot deny claim payment based solely on misrepresentation unless it can prove the applicant intended to deceive.
Furthermore, if life insurance is obtained through a private employer, it falls under the Employee Retirement Income Security Act (ERISA). As a result, the act determines the spouse's interest in life insurance based on federal law and plan terms rather than state community property laws.
From a taxation standpoint, a life insurance death benefit is considered reimbursement for a beneficiary's loss rather than income. This means beneficiaries usually do not pay income or inheritance taxes on the life insurance death benefit.
However, that's only applicable if you name a beneficiary on your policy. If you fail to do so or if your beneficiary is deceased, the insurance company will pay the death benefit to your estate. In such cases, your heirs may be subject to taxes on the money received from your estate.
Centex Insurance Solutions offers a range of coverage options to meet your unique needs. Whether you're considering term life insurance, whole life insurance, or universal life insurance, our knowledgeable agents will help you navigate the choices. Each option has distinct features and benefits, and we'll assist you in finding the right coverage that aligns with your financial goals and priorities.
Secure your family's future today with Centex Insurance Solutions. Contact us now to discuss your life insurance needs and explore your coverage options. Our experienced team is ready to guide you through the process and help you protect what matters most. Let us be your trusted partner in securing your family's financial future.
