{ "media_type": "text", "post_content": "I have a VUL with cash value \nI've decided I no longer need the life insurance associated with this policy.\nIs there a way to get access to the cash value without owing taxes?\nIf no, how will it be taxed and how to determine how much gain/tax?\n\n\nI paid maybe $20k into this policy many years ago. Since then it has increased in value and also paid the premiums from the cash value.\nToday it shows $70k cash value.\n\n\nTIA", "post_id": "616eb67f3f6c09002d180cbd", "reply_count": 1, "vote_count": 1, "bowl_id": "59064a3cb12379001006592c", "bowl_name": "Personal Investment Chatter" }

I have a VUL with cash value I've decided I no longer need the life insurance associated with this policy. Is there a way to get access to the cash value without owing taxes? If no, how will it be taxed and how to determine how much gain/tax? I paid maybe $20k into this policy many years ago. Since then it has increased in value and also paid the premiums from the cash value. Today it shows $70k cash value. TIA

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I believe if you surrender the policy you have to pay tax on any amount you get over the premiums paid. Could you maybe get a loan against the policy, instead of surrendering? You would still be paying the premiums though. That is the only way, other than dying, of getting the money without tax. I don’t recommend the dying option.

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