How much tax do you pay on life insurance payout?

How much tax do you pay on life insurance payout?

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

See also  Can you cancel life insurance and get refund?