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	<title>New answer on: Is Universal Life Insurance Taxable?</title>

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/life-insurance/is-universal-life-insurance-taxable</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Wed, 18 Jun 2014 19:14:42 +0000</pubDate>

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		<description><![CDATA[That is a great question! One of the selling points that your agent will give you when selling you this type of policy is the great cash growth that it can accrue. Managed correctly, it can do that. When you pass, the death benefit is passed tax free. If you borrow from the cash reserves in the policy, those loans are also tax free. If you surrender the policy, (or &quot;cash out&quot;) then all of that growth in excess of what you paid into it is taxable. And if your policy did well, that can be a big tax bite. Check with your agent before you take any action, as even borrowing can have a big impact on your policy&#039;s viability, okay? Thanks for asking!]]></description>

		

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/life-insurance/is-universal-life-insurance-taxable</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Wed, 18 Jun 2014 18:47:53 +0000</pubDate>

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		<description><![CDATA[In general, life insurance death benefits are not subject to income tax.  That is also true with universal life policies.  If the policy is surrendered prior to death any amount that exceeds the sum of the premiums paid into the policy is subject to tax.  The same is true if an amount greater than the sum of payments is taken as a loan from the policy. ]]></description>

		

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		<title>By: John "Jake" Nugent II</title>

		<link>https://insurancelibrary.com/life-insurance/is-universal-life-insurance-taxable</link>

		<dc:creator>John "Jake" Nugent II</dc:creator>

		<pubDate>Wed, 13 Nov 2013 23:00:10 +0000</pubDate>

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		<description><![CDATA[With Universal Life products, there are taxable events when you take withdrawals against the cash value, when your cash value is in excess of your policy basis.

However, if the policy is owned and for the benefit of a person with insurable interest (business partner, family member or love interest) proceeds paid are NOT taxable.  

Death benefit is only taxable when it is investor owned.]]></description>

		

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