Yes possibly. Indiana has an inheritance tax that life insurance can be included in. Spouses are exempt, but most other kin and non-related persons to the insured could incur the inheritance tax.
In Indiana the tax ranges from 1 to 20% and is due 9 months after death.
Life insurance is not charged income tax in Indiana or any other state, as long as the beneficiary is a person. If the beneficiary is the estate, the proceeds will be subject to income tax. Also, interest paid on the face amount for cash value policies can be taxed. Federal and state estate taxes also are charged on the excess over the exempt amount.
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In Indiana the tax ranges from 1 to 20% and is due 9 months after death.