Milford, NH Resident Looks for Advice
When money is paid from a life insurance policy upon death, the money is not considered taxable income and the beneficiary does not have to pay taxes. If the money is not immediately paid out but is held by the insurance company for some reason, interest that is generated during that time may be subject to taxes. If the insurance is paid to the estate, as opposed to a beneficiary, you may have to pay an estate tax on the money.