The cash surrender value will never be more than the premiums paid. But regardless, any earnings are reportable income in the tax year they're paid. Weather they're taxable or not is a different issue. The earnings have to be reported, and the payor will issue the appropriate tax reporting document to report those earnings, tax time. Most common document issued is a 1099-R. But it could be a 1099-INT, 1099-DIV, or anything. It just depends on how the earnings are classified.
