Is life insurance taxable?

Answer Benefits received from a life insurance policy may be considered taxable compensation by the Internal Revenue Service (IRS). Policy benefits that can be taxed will depend on the insurance plan and ... Read More »

Top Q&A For: Is life insurance taxable

Are life insurance policies taxable?

On One Hand: Insurance Payouts Are Not TaxableIn general, insurance payouts are not taxable income. They are paid for with after-tax dollars and are intended to assist people and families during ti... Read More »

Is a life insurance payout taxable?

On One Hand: Private Life Insurance Payouts Are Not TaxedLife insurance policies distribute a death benefit to the designated beneficiary once the insured passes away. Privately owned life insuranc... Read More »

Is a VA life insurance policy taxable?

According to, the dividends received from Veterans' Administration life insurance programs are not taxable. The IRS also doesn't tax lump-sum death payments received by beneficiaries f... Read More »

Are life insurance payments taxable?

The IRS does not consider life insurance payments made to a beneficiary at the time of the insured's death to be taxable income. An exception would be if the policy had been turned over to the bene... Read More »