All Life Insurance Tips

I have a whole life insurance policy and have earned $3.04 in interest. Will I recieve a 1099DIV and do I nee?

I have not pulled nothing out of the policy. It just grows interest inside the policy. But need to know if I need to clam it and will I recieve something in the mail with the interest income .. ?

Public Comments

1. Doubt it. My whole life policy pays "interest" too, but it just gets added to the cash value of the policy. I have never gotten a 1099DIV. idk if you (and I) will have taxable interest if we cash in the policies, or if it is all part of return of premiums we paid in. So, no, you do not claim it (unless your insurance company does sent you a 1099DIV and tells you to do so. They have until Jan 31 to mail out forms, if they are going to.
2. Until you pull it out, it's not yours yet - it's "cash value" to the policy.
3. Check with your insurance company. It used to be you did not have to report it unless you make a dividend withdrawal or cancelled the policy. Not sure if the rules have changed.
4. I recommend switching to term life & invest the rest. & roll over to a higher mutual fund, maybe to about 12%. Whats yours right now, 3%?
5. Yeah I would agree that I would cash out the whole life policy, get term and invest the difference. Whole life will take forever to build some serious cash value. Furthermore when you do "borrow" against your policy you will have to pay this back or your death benefit will decrease. As for your question, no you do not have to file until you take cash out of your policy.