Is life insurance taxable in Canada?
Most income gained from a life insurance policy in Canada is not subjected to income tax, regardless of the size. However, there are a few exceptions. For example, if you have not named a beneficiary, your death benefit will automatically be added to your estate. In this case, your death benefit may be subject to taxation. However, this is easily avoided by naming a beneficiary. To learn more about life insurance in Canada, speak to a BrokerLink broker.