SJ - Accrued earnings are exactly what I'm talking about. Those earnings can be in the form of interest, dividends, or other possible types. On my WL policy accrued earnings were used to buy additional paid up insurance. But when I cashed out those earnings were still taxable, because what I used them for didn't matter. They were taxable in the year I cashed out, even though I didn't actually receive that money anyway. (It had been used to buy additional paid up insurance as they accrued.)
