Is my dividend taxable?
Dividends on life insurance are generally non-taxable. However, dividends for certain "modified endowment" policies are taxable. Dividends also become taxable if the total of all dividends paid on a policy exceeds the total premiums paid. In addition, if dividends are "left to accumulate at interest", the interest (not the dividend) is taxable in the same manner as interest under a savings account in a bank.
All life insurance companies are required by law to file a Form 1099 for each policyowner in which interest of $10.00 or more is declared during a calendar year.
For additional tax advice, we suggest that you contact a tax consultant, attorney, or the local office of the Internal Revenue Service.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
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What is backup withholding?
Centrian Life Insurance is required to report all interest paid on the accumulated balance of dividends which earns interest in excess of $10.00 or more annually. This is reported to the Internal Revenue Service through the policyowner's Taxpayer identification number (TIN). According to IRS regulations, if there is no policyowner TIN on file with our company, or we have been notified by the IRS to backup withhold, we are required to withhold a percentage of the income earned and forward it to the IRS. For most people, their TIN is the same as their Social Security number.
It is therefore important to be sure that the policyowner's certified TIN is on file with us. A W-9 form or related substitute form can also be used.
Note: When contacting our call center, you will be requested to provide positive verbal identification as a policyowner.
Our mailing address is:
Centrian Life Insurance
P. O. Box 4044
Woburn, MA 01888-4044
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