Does life insurance get taxed? 
Generally , no , but more information needs to be provided to give a more accurate answer . If you receive the proceeds as the beneficiary because of a death of an insured person , the benefits are almost never not included in your taxable income . However , if you receive interest then it has to be reported just like any other interest earned . As and additional note , the death benefit is usually included in calculation the estate taxes of the person who passed away . 