How is whole life insurance cash value taxed?

How is whole life insurance cash value taxed?

The good news for a whole life policyholder is they don’t have to pay income taxes each year on the growth in their plan’s cash value. Similar to retirement accounts, such as 401(k) plans and IRAs, the accumulation of cash value in a whole life insurance policy is tax-deferred.

See also  How do I find out how much my Child Trust Fund is?