Life insurance questions, answered from the source

How life insurance is paid and taxed, checked against the IRS and state rules, with the source next to every answer.

◆ 1 guide, more every week■ Checked against IRS and state rules● Updated November 12, 2026

Questions people ask

Updated November 12, 2026Do you pay taxes on life insurance?A life insurance payout to a named beneficiary is usually not taxable income. Interest, cash value gains, estate tax and 5 state inheritance taxes can be.Read the answer →

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These guides explain how policies and rules are typically written. Your own policy and your state's rules decide your case. It is not insurance, tax or legal advice, and we are not an insurance agent.