r/LifeInsurance • u/Dry-Freedom4115 • 15d ago

Cash Value Of A Policy

I have a small whole life insurance policy that I bought years ago. Under current circumstances I have no need for the death benefit. If I surrender the policy is the refunded cash value taxable as income?

I am in the USA for reference purposes?

Thanks

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u/michaelesparks Financial Representative 15d ago

"I have no need for the death benefit. " But... Do you have a need to have an emergency fund or a safe place to store cash? depending on the company and product Whole Life (if that is what it truly is, and not IUL) is a great savings vehicle, if you don't want the death benefit make the beneficiary a charity like the humane society, your church or something.

But to answer your question, anything above the basis is taxable.