We have a life insurance policy since 1982. $25,890.00- if cashed in would be $13,586.35. Any taxes?

by **dermot** » Fri Apr 27, 2012 7:38 pm

Would we have to pay taxes on the cash value? We bought this insurance to pay off house incase of either of our death.

by **wryhta49** » Fri Apr 27, 2012 7:44 pm

If the cash value at surrender is larger than the sum of the premiums you have paid over the years, the excess is taxable. The insurance company will send you a 1099-R showing the taxable amount.

Isn't it nice to get a response that is more that just a wild guess!

by **omet65** » Fri Apr 27, 2012 7:56 pm

O hell yeah...there is tax on everything...there's even a" Death tax"
..yup you can consider atleast 1/4-1/3 gone to the governments pockets

by **aundray84** » Fri Apr 27, 2012 8:00 pm

Not sure but good question and good luck!

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