Is life insurance taxable to spouse?

Is life insurance taxable to spouse?

Life insurance proceeds are not taxable with respect to income tax, so long as the proceeds are paid out entirely as a lump sum, one time, payment. … If your spouse is your beneficiary, the life insurance payout is not taxed and will be passed on to them fully, along with the rest of your estate that was left to them. Dec 8, 2021

See also  How much money does the average American retire with?