Can I get life insurance if I owe back taxes?

I want to get life insurance, but one of the application questions is something along the lines of "have you been notified by the IRS that you are subject to backup withholding because you owe taxes". Well I do owe the IRS about $7,000 (which I'm fighting, but that's a different story), and they have issued a levy against my property which is currently on hold while i fight them. I'm not sure if this will prevent me from getting life insurance, or if they just want to know so they can attach themselves to the cash value.

1 Answer

  • 7 years ago

    It's part of the life insurance picture. Combined with other information, it could have impact on your rates, or the availability of the coverage you want.

    If you're using a broker, talk the situation over with them. If you're not - well, you should probably be using a broker.

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