The policy will be included as part of the policy owner's property and the value may push the estate's worth over the federal estate tax limit. (pocketsense.com)
The death benefit from life insurance is not taxed, unless your estate is over the federal or state estate tax limit. (termlife2go.com)
I can think of scenarios where these financial products would play a role - especially annuities (less so whole life - especially with the new estate tax limits). (thecollegeinvestor.com)