Life Insurance Policies are not paid for with before-tax dollars. The reason for this is when your beneficiaries can get the check for your Life Insurance that money is already taxed and they don’t have to pay taxes on that money. So, if you have a $100,000 Life Death Benefit and you pass and your heirs are given that check there are no taxes due. However, if you were to pay for the premiums with pre-tax dollars, taxes would have to be paid, so Life Insurance companies don’t bother with that, they only do post-tax dollars. .