What are the tax consequences of selling a whole life insurance policy?

What are the tax consequences of selling a whole life insurance policy?

Tax Free – Proceeds you receive up to your tax basis (i.e., the total amount of premiums you paid over time) are not taxable; Ordinary Income – Proceeds you receive in excess of your tax basis up to the amount of your policy’s cash surrender value are taxed as ordinary income; and. Feb 28, 2019