Table of Contents Newsletters & Articles Island News Women's News Conferences Guam Calendar The Arrow Family

Law eases use of life insurance coverage for medical bills A new federal tax law allows people with chronic or terminal ill nesses to sell their life insurance to cover medical bills, without paying income tax on the benefits. Payments made after Dec. 31, 1996. through "accelerated benefits" from an insurance company or a payment by a viatical settlement company, are not subject to income tax. Taxing the benefits substantially reduced the amount of money available to the insured. The new law will help allow the individual to die with dignity and less taxes as well (CDC National AIDS Clearinghouse 1/3/97)