I have an individual whole life policy for myself and I also opened independent whole life policies for each of my 2 boys. I am considering surrendering all three whole life policies, but am concerned with the possible tax implications for doing this. My policy has a "Net Cash Value" of $6996. There is another section showing the dividends for the policy. The "Maximum Dividend Available" is $415 with another line that is labeled "Paid Up Additions Face Amount" of $2019. I would like to know if I will be responsible for taxes on the "Net Cash Value" amount, the "Maximum Dividend Available", or the "Paid Up Additions Face Amount". The boys policies are similar, but much lower in value. Any help would be greatly appreciated.
