To put "the basics" in a nutshell:
If the premiums you pay are not included in your taxable income, then any policy payout is taxable income.
If the premiums you pay are included in your taxable income, then any policy payout is not taxable.
The above statements are not true 100% of the time. That's just how "MOST" policies work. It just depends on the type of policy you have.
