Is Variable Annuity Death Benefit Taxable? 
The Death Benefit on a Variable Annuity -LRB- or any other type of annuity -RRB- is taxable as income . However , there are often some techniques to help minimize those taxes . One technique is for the beneficiary to take the value as an income stream , and not as a lump sum . If taxes are a worry about any financial product you own , consult with a CPA . 