Is A Life Insurance Check Taxable? 
Whether a `` Life Insurance check '' is taxable depends on what kind of life insurance check it is . You did n't say if it was the death benefit proceeds , or if it was a cash withdrawal from the policy , or if it was a loan against the cash value of the policy . The payment of the death benefit to the beneficiary is NOT taxable . A check for a LOAN against the cash value is NOT taxable . However if you surrender the policy for the cash value or if you do a partial surrender for cash , if you receive more money than you have paid in , -LRB- cash basis of the policy -RRB- , then the amount in excess of premiums paid in WILL be taxable as ordinary income . 