So if I die and my husband collects the $, is that $ taxable?

Generally not taxable. There are exceptions.

Why not work with an agent or financial planner who can guide you through this and all the other questions that arise?

You rely on a message board for answers to these critical questions yet no one on here MUST provide an accurate answer. No one here knows all of the details of your life, your financial situation or your particular policy.

Depends. If he's the beneficiary, then no. If your ESTATE is the beneficiary, well, it depends on where you live. If your ESTATE is the beneficiary, the life insurance payout becomes part of your estate, and subject to any estate taxes that your estate has to pay, BEFORE your heirs can get anything.

Income taxes- No

Estate Taxes
Depends on the ownership of the policy and how your bank accounts are set up. If you do not own the policy (your husband is the owner) then you will not have to worry about estate taxes. if you own the policy and the money is paid into a bank account without joint ownership, then it can be rolled into consideration of the estate taxes if the estate is large enough (like 1 or 2 million dollars).

Believe it or not, it is best not to own your own life insurance, but you can help them pay it.

Are you the beneficiary. Or is the estate the beneficiary?
If you are the beneficiary and all is in order, you could have the $$$ in two weeks.
If the estate is the beneficiary, you'll wait for a year if you're lucky.

http://mylifenet.com/

Only if the policy is a modified endowment contract. If not, then no income taxes will be charged on the death claim.

However, if your husband dies before you do and then you die, the death claim will be paid toward his estate. Then estate taxes will apply upon any family member that claims the money.