Will I Receive A 1099 For Life Insurance Proceeds? 
If you are receiving your life insurance proceeds on a payment plan , you will be paid interest on the amount of the death benefit that has not yet been paid to you . The interest -LRB- not the payments , just the interest -RRB- will be charged income tax and generate a 1099 . The life insurance proceeds themselves will not cause you to receive a 1099 . 