The death benefit of a life insurance policy is NOT taxable. However, things may get a little bit complicated if you want to cash in on your policy dividends. If you reinvest your dividends into the policy, they won’t be taxed, but if you decide to cash out your policy or try to access the cash value in a way where you make a financial gain, you may be taxed. Additionally, if you put the policy in your business’s name, the premiums may be tax-deductible. It’s always best to speak to your advisor about your specific plans for your whole life policy to know for sure.