Is life insurance received taxable income?

[jkrobert]

What is the name of your state? TX

Is a life insurance payment received by a beneficiary considered taxable income? Is it taxed at all? If so, at what rate?

Additionally, does the decedent's owing the IRS at the time of death affect what a beneficiary recieves?What is the name of your state?

 

[Betty]

Life ins. payable to a named beneficiary is free of income tax & is not considered as part of deceased's estate and, therefore, is not subject to creditors' claims.