Is Life Insurance Cash Value Taxable Income? 
Cash Value for a life insurance policy is not taxable as income . Cash Value is tax deferred upon growth when the premium is paid of and accumulate compounded . Tax is applied if there is a basis . of you have 20,000 in cash value and you 'd basis is 15,000 you withdraw 8,000 you will not be taxed since its bow your basis . If it is handed to beneficiary after death then will not be taxed . 