Tax Facts

64 / Is the death benefit under the double indemnity clause of a life insurance policy subject to federal income tax?

Updated: October 20, 2026 at 03:25 PM
No. The death benefit is generally tax-exempt as proceeds payable by reason of an insured’s death.1 If the proceeds are held under a settlement option, the regular rules apply ( Q 70, Q 71).




1.     IRC § 101(a); Treas. Reg. § 1.101-1(a)(1).


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