Does Life Insurance Money Get Taxed? 
If life insurance money is left to the estate of the person who died , the money can be taxed . If there is no beneficiary , or the beneficiaries are deceased , the money may also go to the estate , where it will be subject to taxes . If the life insurance benefit is left to a stated beneficiary who is a person or entity , income tax will generally not be charged . Estate taxes do apply for amounts beyond the exemption . Contact a tax attorney for exceptions and more detail . 