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Question

IF YOU TAKE OUT A LOAN ON YOUR CASH BUILD UP ON LIFE INSURANCE DO YOU NEED TO PAY TAXES ON THE LOAN?

Forum|Forum|1 year ago
February 20, 2025
1 reply
0 views

ALL WHOLE LIFE INSURANCE POLICY BUILD UP CASH VALUES WE TOOK OUT SOME OF THE CASH VALUE AS A LOAN THAT WE MUST PAY BACK. IS THAT MONEY ON THAT LOAN TAXABLE?

No, when you take a loan against the cash value of your whole life insurance policy, the loan is not taxable. As long as your policy remains in force and you're just borrowing against the cash value, you don't need to report this on your tax return or pay taxes on the loan amount.