Is Life Insurance Taxable? 
Video Transcript : Today 's question is , is life insurance taxable ? Well , at death of the policy insured , the actual proceeds generally go to the beneficiaries of the policy , absolutely tax free . It takes about 60 days for it to process , and your beneficiaries will receive it . And of course , they can use that to pay off indebtedness , or to put money aside in some kind of investment for future obligations like college education or retirement of maybe a surviving spouse . But the beauty of it is , sometimes you can use this for all kinds of ideas that you never thought about , including ongoing income for the surviving spouse ; an idea that is really becoming much more popular today . Some business situations as well as some estate situations may incur a tax , depending upon how it 's owned . But predominantly , most life insurance goes tax free to their beneficiaries . 