What type of tax is associated with death proceeds from a life insurance policy?

What type of tax is associated with death proceeds from a life insurance policy?

Is a life insurance payout taxable? One of the perks of a life insurance policy is that the death benefit is typically tax-free. Beneficiaries generally don’t have to report the payout as income, making it a tax-free lump sum that they can use freely. Oct 5, 2021