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Do I have to pay taxes on a Variable Universal Life policy when surrendered?

I am surrendering my Variable Universal Life Insurance policy and need to know if I will be taxed on the money I receive. The surrender form has a place to choose how much in taxes to withhold but I am not sure what to put or if I am even taxed on this money (it is a generic surrender form for all kinds of accounts/policies).

Public Comments

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2. If your cumulative premiums are less than the amount paid out, you will have a gain and yes, it is taxable at ordinary income tax rates. When calculating the gain, you do not consider the surrender charge which is NOT deductible anywhere on the tax return.
3. no