Will I Be Taxed On Life Insurance? 
That is a great question ! One of the big reasons why life insurance is a good thing to have is that the money paid out -LRB- the death benefit , or face value -RRB- is received by your beneficiary tax free . You paid your premiums after tax , so the benefit is not taxable . It does not have to be shown as income . I hope that helps , thanks for asking ! 