actions. The tax treatment differs for whole life versus
term life, whether it is sold
or surrendered, and also
whether the insured indi-
vidual is terminally or
You do have cost basis in the life insurance contract which you can use to reduce your taxable gain. Click on the image of the life insurance calculator to the right for help in calculating your taxable gain and after-tax sales proceeds.
Know what your after-tax sales proceeds will be before you make a decision to sell or surrender your policy.