A nice benefit of receiving a life insurance payout is that the money generally is not taxable.

The Internal Revenue Service says that if you receive the money as a beneficiary of a life insurance policy, the money isn’t counted as gross income and thus doesn’t need to be reported on your federal taxes.

There could be taxes owed if the life insurance policy owner were someone other than your mother. To find out if this would affect your family’s situation, read Life insurance tax surprise: The unholy trinity.

Check our life insurance offers for you:

*Sponsored

	Everyday Life Life Eliminate guesswork with tech that makes it easy to find your best value Quick and easy online process – no sales calls or medical exams 30-day money-back guarantee A+ BBB rating	Get a Quote
	Bestow Apply online in as little as 5 minutes Rates start around $10/Mo Get up to $1.5 million in coverage Most applicants get an instant decision	Get a Quote
	Globe Life No Medical Exam - Simple Application Get a Free Quote and Apply Online in Minutes Monthly Rates as low as $3.49 for Adults/$2.17 for Children No Waiting Period – Fast Approval Process	Get a Quote
	Life Insurance Pro View Affordable Life Insurance Plans Side by Side MetLife, Prudential, AARP, New York Life, & More Term, Whole, Universal, and Variable Insurance Plans Get Free Quotes and Speak with a Licensed Agent Today!	Get a Quote
	Gerber 100% guaranteed acceptance No medical exam No health questions Premiums stay the same as long as they're paid on time	Get a Quote
	Ethos Ages 20-65 eligible for instant same day coverage with no exams - just a few online health questions No pushy sales reps. You don’t need to talk to an agent – unless you want to Rated 4.8 “Excellent” on Trustpilot and Google, along with an A+ rating from the BBB	Get a Quote

*Sponsored