Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

Pros and cons of cashing out life insurance policies Beneficiaries of a life insurance policy will owe no federal tax on insurance payouts that they collect after the policyholder dies, according to this Fox Business article. Policyholders who have terminal illness may not also be required to pay any taxes for withdrawing up to 60% of the policy's value. Those who intend to designate their grandchildren as beneficiaries of their health insurance are advised to consult a tax professional, as the move could have a tax consequence thanks to the so-called generation-skipping transfer tax.

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