Is Cashing Out Life Insurance Taxable? 
Is cashing out Life Insurance values taxable ? It can be depending on what type of policy you have , it can also provide you with how much of the gain is considered taxable . Keep in mind your premiums paid in have in most cases already been taxed . If you are dealing with a mutual company that pays dividends , the portion of the values that are dividends will not be taxed . You are left with the gains on the policy . IF you are considering cashing out , contact your company and ask them to prepare a statement prior to so you can see and plan accordingly . 