The tax treatment of life insurance varies depending on the type of policy and the country you live in. In general, life insurance premiums are not tax-deductible, but the death benefit paid out to beneficiaries is typically tax-free. However, the tax treatment of life insurance can be more complex in certain situations, such as when the policyholder borrows against the cash value of a permanent life insurance policy or when the policyholder receives a dividend from a participating policy. In some cases, the interest earned on the cash value of a permanent life insurance policy may be taxable. It's important to consult with a tax professional or financial advisor to understand the specific tax implications of your life insurance policy.