Life insurance question

susgeek
Wed, 05 Oct 2011 07:55:47 +0000

^^^ Agreed.

You do not get a 1099 for a life insurance payout, and it is not taxable.

I stand by my original advice - spend the money on necessities, and as far as FA is concerned, it is not a factor. Pay down your mortgage, pay off your car, something like that.

Now if you get millions of dollars, that would be a different story (and then there is no reason you can’t self-pay for college anyway). But if you are taking about a few grand, just take care of the bills.