Is Life Insurance Tax Free To The Beneficiary? 
Yes , Life iInsurance proceeds paid directly to your beneficiary go to that person completely tax free . Life Insurance proceeds may also not be attachable by any creditors . That having been said , if your beneficiary receives money from your life insurance and then invest that money , though the initial amount received is not taxable , anything that grown from that investment is . It is always a good idea for your beneficiary to consult with a financial planner , accountant or Tax Attorney to determine their best strategies . 