Is Life Insurance Surrender Value Taxable? 
In Canada , the cash surrender value of a life insurance policy is taxable if the cash value received exceeds the adjusted cost base . In simple terms the total premiums paid , less the cost of any riders and the net cost of pure insurance . The net cost is a rate using one year renewal term from a government table . In Canada , borrowing can trigger a taxable gain as can most transfers of ownership . Best to check your options and the consequences before you do . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . 