This chapter is intended as an overview of the federal tax treatment of life insurance and annuity contracts. It is based on the law in effect at the publication date. Any legislation passed subsequently could, of course, affect the rules described. This overview is not intended to be a detailed treatment of the subjects covered. When financial services professionals are confronted with a tax issue, they must utilize more in-depth reference sources. Nevertheless, this chapter should serve as a helpful guide to the tax rules and issues that surround life insurance products.