I just received the surrender forms. Looks like I can elect to not have any tax withhold on my surrender value and pay at tax time or go to the site you specified to pay
That's fairly typical where you make an election prior to the payout. Depending on the amount to be taxed, you can go with what you want. I know when I cashed my whole life policy out a few years ago, the payout was something around $45K with $12K being taxable. I elected to have 20% of that $12K withheld for federal taxes so I wouldn't have a large tax bill at tax filing time. Then in the end when I did file my taxes I ended up getting about $400 of that refunded back to me from the IRS.
Had I not does that, then at tax time I would have owed close to 2K in taxes, which could have been painful on the financial front to have to pay it all in one shot.
