Is Life Insurance Considered Income? 
Life Insurance is an indemnification or protection product . However , permanent cash value life insurance that is designed as a non-modified endowment contract can also generate tax free supplemental income via withdrawals of basis after 15 years * and policy loans of gain as long as the contract is kept in force for the life of the policy insured . -LRB- * The force out rule governs the first 15 years of a life insurance policy , including withdrawals . -RRB- 