Is Interest Earned On Life Insurance Taxable? 
Life insurance plans are one of the most protected pieces of property a person can own . One of the protections is that gains via interest and dividends , -LRB- if in a participating , usually mutual company , plan -RRB- , are NOT taxable as long as they are in the policy . You may also have use of the cash value including the gains without being taxed as long as it is accessed via policy loans . It 's a beautiful thing ! 