When Is A Life Insurance Death Benefit Taxable? 
Life insurance is paid with after tax dollars and the death benefit is in most situations non-taxable . In Canada , if the death benefit is paid to a named beneficiary it is paid directly and bypasses probate . This would avoid any probate fees . LIfe insurance policies , especially Endowment Policies , used to be used as Registered Retirement Savings Plans . The death benefit of these policies is taxable . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me.If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 