Notifications from Aflac

We care about Aflac’s policyholders affected by the recent wildfires:

To help provide relief for Oregon policyholders residing in Oregon who were affected by the wildfires, Aflac will provide a premium grace period starting Sept. 3, 2025, and ending Nov. 26, 2025. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.

For Network Dental and Vision Members:

This grace period also provides an extension of filing deadlines for claims; relaxation of prior authorization, precertification, and referral requirements; access to appropriate out-of-network providers due to unavailability on in-network providers or the members’ displacement; and leniency for any other action required under the certificate. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


We care about Aflac’s policyholders affected by the recent weather:

To help provide relief for Arizona policyholders residing in Gila, Mohave, and Maricopa Counties affected by the heavy rains, Aflac will provide a premium grace period starting Sept. 25, 2025, and ending Jan. 13, 2026. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.

For Network Dental and Vision Members:

This grace period also provides an extension of filing deadlines for claims; relaxation of prior authorization, precertification, and referral requirements; access to appropriate out-of-network providers due to unavailability on in-network providers or the members’ displacement; and leniency for any other action required under the certificate. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


We care about Aflac’s policyholders affected by the recent weather:

To help provide relief for Alaska policyholders and certificate holders residing in Northwest Arctic Borough, North Slope Borough, Kusilvak Census Area, Bethel Census Area, Nome Census Area, and Aleutians West Census Area who are affected by the storm, Aflac will provide an extended premium grace period starting Oct. 9, 2025, and ending Dec. 15, 2025. This grace period also includes an extension of filing deadlines for claims and leniency for any other actions required under the policy or certificate. In addition, Aflac will relax prescription drug benefit guidelines to allow payment of claims when a covered prescription drug is refilled prior to the usual 30-day limit. Policyholders and certificate holders may also request a replacement copy of their policy or certificate.

For Network Dental and Vision Members:

Aflac is providing temporary relaxation of precertification and referral requirements. Members will have access to appropriate out-of-network providers if in-network providers are unavailable or if they have been displaced, and leniency will be provided for any other actions required under the certificate. Affected members should contact Aflac Benefits Solutions (formerly Argus Dental and Vision) at 855-819-1873, option 1, for assistance.


Aflac offers premium grace period for federal government employees:

Aflac is offering a grace period for premium payments to help provide relief for policyholders employed by the Federal government who are not receiving pay during the government shutdown. This grace period will begin on October 1, 2025, and extend until payroll resumes for these government employees. Eligible policyholders may inquire about the grace period by calling (888) 515-1941.


We care about Aflac’s policyholders affected by the recent wildfires:

To help provide relief for California policyholders residing in Tuolumne and Calaveras Counties affected by the Lightning ignited fires, Aflac will provide a premium grace period starting Sept. 2, 2025, and ending Nov. 18, 2025. This grace period also provides an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder.

For Network Dental and Vision Members:

This grace period also provides an extension of filing deadlines for claims; relaxation of prior authorization, precertification, and referral requirements; access to appropriate out-of-network providers due to unavailability on in-network providers or the members’ displacement; and leniency for any other action required under the certificate. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


We care about Aflac’s policyholders affected by the recent weather:

To help provide relief for California policyholders residing in Trinity County affected by the Dec. 15, 2024, and Dec. 29, 2024, winter storms, Aflac will provide billing leniency for impacted insureds, an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder. Affected members should contact Aflac at 800-992-3522 for assistance.

For Network Dental and Vision Members:

This also provides an extension of filing deadlines for claims and leniency for any other action required under the certificate. Affected members are not required to obtain prior approval when accessing appropriate out-of-network providers when in-network providers are unavailable. The cost-sharing for out-of-network will be in amount equal to cost-sharing affected members would have paid for the provision of that service in-network. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


We care about Aflac’s policyholders affected by the recent levee failure:

To help provide relief for California policyholders residing in San Joaquin County affected by the Oct. 21, 2024, Victoria Island Levee failure, Aflac will provide billing leniency for impacted insureds, an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder. Affected members should contact Aflac at 800-992-3522 for assistance.

For Network Dental and Vision Members:

This also provides an extension of filing deadlines for claims and leniency for any other action required under the certificate. Affected members are not required to obtain prior approval when accessing appropriate out-of-network providers when in-network providers are unavailable. The cost-sharing for out-of-network will be in amount equal to cost-sharing affected members would have paid for the provision of that service in-network. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


We care about Aflac’s policyholders affected by the recent wildfires:

To help provide relief for California policyholders residing in Los Angeles and Ventura Counties affected by the wildfires, Aflac will provide billing leniency for impacted insureds, an extension of filing deadlines for claims and leniency for any other action required under the policy. Aflac will provide a replacement copy of the policy upon request by the policyholder. Affected members should contact Aflac at 800-992-3522 for assistance.

For Network Dental and Vision Members:

This also provides an extension of filing deadlines for claims and leniency for any other action required under the certificate. Affected members are not required to obtain prior approval when accessing appropriate out-of-network providers when in-network providers are unavailable. The cost-sharing for out-of-network will be in amount equal to cost-sharing affected members would have paid for the provision of that service in-network. A replacement copy of the certificate will be provided upon request by the certificate holder. Affected members should contact Aflac Benefit Solutions (formerly Argus Dental and Vision) at 855-819-1873, Option 1, for assistance.


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Do Beneficiaries Pay Taxes on Life Insurance Policies?

Life insurance payouts aren’t usually taxable. But there are some exceptions you should be aware of if you have a policy or plan to apply for one. Let’s dive deeper into how beneficiaries and death benefits work, as well as when beneficiaries may need to pay taxes on life insurance.

2 Min Read

What is a beneficiary of life insurance?

A beneficiary is a person or entity that you can name in a life insurance policy to receive your death benefit upon your passing. You may choose one beneficiary or multiple beneficiaries, such as your spouse, adult children, a charity you believe in, a trust, or even a business.1 Additionally, you may change your beneficiary if you need to.

What is a life insurance death benefit?

The amount of money your insurance company will pay out to your beneficiaries if you pass away during your policy’s term is known as the death benefit. While the death benefit is typically paid out in a lump sum, your beneficiaries can choose other payment options. The amount they’ll receive depends on the face value of your policy minus any withdrawals from your cash value account or policy loans you didn’t repay.2

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Does a beneficiary pay taxes on a life insurance payout?

In many cases, the money your beneficiaries receive from a life insurance payout is not taxed as income. However, there are a few exceptions that we’ll go over below.

Instances where beneficiaries may have to pay taxes on life insurance

Some common situations where beneficiaries might owe taxes on life insurance include:3

The policy accrued interest

If life insurance proceeds have accumulated some interest, taxes are usually due. Fortunately, the amount that earned interest will be taxed, rather than the entire death benefit.

The policyholder names the estate as a beneficiary

In the event a policyholder chose their estate as a life insurance beneficiary, taxes might apply. The taxes loved ones may pay depend on the estate’s value.

The insured and the policy owner are different individuals

The person that buys a life insurance policy is usually considered the owner and insured. But if a different person holds each role, there may be taxes involved.

Ways to avoid paying taxes on a life insurance payout

Fortunately, there are some strategies beneficiaries can use to avoid paying taxes on a life insurance payout, such as:

Use an ownership transfer

When an estate is involved, whether life insurance proceeds are taxable is based on the policy’s ownership when the insured passes away. To avoid taxation, you can transfer ownership of your policy to another person or entity.4

Create an irrevocable life insurance trust (ILIT)

If you set up an irrevocable life insurance trust (ILIT), it will own the life insurance policy rather than you. This means the proceeds will not be included in your estate. You can state how you’d like the beneficiaries to receive or use the payout.5

Avoid the gift tax

A gift tax comes into play if the life insurance policy’s cash value is higher than the gift tax exemption, which is a lifetime amount of $13.99 million or $19,000 per year as of 2025.6 It’s a good idea to ensure your cash value does not exceed this amount.

Get a life insurance quote

A death benefit can help protect your loved ones financially upon your passing. The good news is that it’s not taxable in many cases. However, there are several exceptions you should know about and keep in mind when you set up your policy.

Aflac offers a variety of term and whole life insurance plans that can help you meet your goals. Our plans offer a variety of coverage options. Chat with an agent today to get a quote or more information.

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Learn more about Aflac products for Individuals & Families: