Life insurance money is generally not considered as income for tax purposes. When you receive a life insurance payout, it is usually not taxable. The reason for this is that life insurance is designed to provide financial protection to your beneficiaries in the event of your death. The money paid out by the insurance company is meant to replace the lost income and support your loved ones. However, there are a few exceptions to this rule. If you have a life insurance policy that has an investment component, such as a cash value or whole life insurance policy, the interest or investment gains may be taxable. Additionally, if you sell your life insurance policy for a lump sum, the amount received may be subject to taxation. It's always a good idea to consult with a tax professional or financial advisor to understand the specific tax implications of your life insurance policy.