Is Life Insurance Tax Free To The Beneficiary? 
Death benefits are tax free to the beneficiary . This is a wonderful benefit of Life Insurance . If the beneficiary decides to leave the money with the insurance company to continue to grow , they would have to pay taxes only on whatever growth there was on that benefit , not the benefit originally paid in the policy . Also , if there was a very large estate , there might be some tax for the estate to pay . Life Insurance has some absolutely incredible tax benefits which I would be very happy to explain to you . You can even take cash out for a car , college , a new home , retirement , and if done properly , not pay any taxes on these funds . Just Call Me . Gary Lane , Agent , New York Life , 949 797 2424 . Thanks . 