Will I Have To Pay Taxes On Life Insurance? 
There are no taxes for owning a life insurance policy . If it increases in value , there are no reporting requirements . However , if you surrender the policy and the amount you receive exceeds the total of premiums paid , then you have taxable income . If you die , your beneficiaries will not have to pay income tax on the proceeds , however , the proceeds are includable in the estate/inheritance calculations which could generate a tax liability . There are other conditions where tax could be imposed but generally speaking life insurance proceeds escape taxation . 