Investopedia

Continue to Site »

Insurance Proceeds

Filed Under » , ,
Dictionary Says

Definition of 'Insurance Proceeds'

The benefit proceeds paid out by any type of insurance policy as a result of a claim. Insurance proceeds are paid out once a claim has been verified, and financially indemnify the insured for a loss that is covered under the policy. Insurance proceeds are sometimes paid directly to a care provider (as with health insurance), but usually are sent to the insured in the form of a check.
Investopedia Says

Investopedia explains 'Insurance Proceeds'

Insurance proceeds are tax-free in most cases, regardless of the type of insurance or policy. One exception is disability insurance, which is taxable to the insured as income if the insured used pretax income to pay premiums. Another is when a homeowner receives insurance proceeds for a damaged or destroyed home that exceed the property's adjusted basis. In this case, the profit is taxed as a capital gain unless a replacement property is purchased within the specified period of time.

Articles Of Interest

  1.

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.

  2. Long-Term Care Insurance: Who Needs It?

    No one is immune to the possibility of one day needing long-term care - and the costs can deplete a life savings.

  3. 15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.

  4. Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.

  5. Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.

  6. How Much Life Insurance Should You Carry?

    Learn how much - if any - insurance you really need.

  7. Retirement: The One Thing Couples Shouldn't Do Together

    Staggering retirement can have both financial and emotional benefits for married couples.

  8. Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.

  9. Investing In Medical Equipment Companies

    Learn the basics about medical equipment companies and how investing in them can benefit growth and value investors alike.

  10. In Retirement, Snowbirds Leave Cold Weather Behind

    Rather than shivering away their golden years, retirees can fly south to winter in sunny locales.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center