# US Citizen/UK living - UK Life Insurance - Tax



## welshbloke (Jan 4, 2016)

Hi all - appreciate any guidance. I'm a US citizen living in the UK, and just taken out a mortgage. I want to take up Life Insurance to cover the mortgage amount to protect the family, but i'm wondering how/if it all it would be taxed and the funds paid out to my wife (also a US citizen). My guess is that it would be taxed by US. Anybody have any experience/insights?

Thanks
Steve


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## BBCWatcher (Dec 28, 2012)

Assuming the life insurance is ordinary, simple life insurance (such as ordinary term life insurance) and not some sort of hybrid "investment" product, there is no direct U.S. tax or financial reporting requirement associated with either your individual purchase of the policy or its payout to your wife. U.K. tax consequences might or might not be different, and perhaps someone can comment on the U.K. side.


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## Bevdeforges (Nov 16, 2007)

Just for reference, here is the section from IRS Publication 525: https://www.irs.gov/publications/p525/ar02.html#en_US_2014_publink1000229373
Cheers,
Bev


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## welshbloke (Jan 4, 2016)

*Thanks*

Thanks both for the speedy and useful responses


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