Are Life Insurance Proceeds Taxable In Oklahoma? 
Life insurance proceeds in Oklahoma are usually not taxable for income tax if the beneficiary is other than the estate . If the life insurance goes to the estate , either because the beneficiary was designated as such or the beneficiaries named on the policy are no longer alive , the death benefit goes through probate and will be taxed . Oklahoma has state estate taxes that exempt the surviving spouse , and exempt other heirs up to $ 3,000,000 . Federal estate taxes exempt up to $ 5,250,000 , which includes the value of the policy proceeds plus the rest of the estate . 