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Taxes on lIquidating whole life insurance?

hi, im just wondering what kind of taxes i should expect when and if i liquidate my whole life insurance. thanks! also, im single,18 and in college with a part time job.

Public Comments

1. You should only have to pay taxes on any money above and beyond the cost basis (what you put into the policy). I would consider why you'd want to liquidate, since you'll never get it for any less than what you're paying now! There may be other options, talk to your agent, or an agent.
2. If your only 18 your policy probably has little cash value to worry about taxes unless it was started when you were very young. Remember if you liquidate you will not get the face value only current cash value. If for some reason youre still worried about taxes you could always borrow most if not all the cash value against the policy. The loan will not be taxed even if you keep it but the loan plus interest rate charged by company will be deducted from the death value making your policy almost worthless.