Does life insurance get taxed? 
Life insurance is in most cases `` income tax free '' , but it may not be `` estate tax free '' . Aspects like ownership , beneficiary , qualified plans for example can determine if proceeds are subject to some form of taxation . When working with a insurance professional it is a wise idea to talk about what you 'd like the insurance policy to do while at same time providing the insurance professional enough financial information to protect your family from situations that could generate taxes unnecessarily . 