Life insurance is usually not charge income tax in New Hampshire or any other state. The face amount of the policy is income tax free when passed to a beneficiary who is a person, charity, trust, or other entity. It can be charged income tax if passed to the estate.
Taxed depends a lot on what exactly is going on. Death benefits are not taxed for income purposes (as is the case with the majority of policies in all states). And New Hampshire has no estate tax.
Distributions from a life insurance policy that are not a return of basis are recognized as income, but since New Hampshire does not have an income tax, there would be no income tax due on those distributions.
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Distributions from a life insurance policy that are not a return of basis are recognized as income, but since New Hampshire does not have an income tax, there would be no income tax due on those distributions.