If I may, I'd like to tag onto this question.
We too are considering surrendering my 40 year old whole life insurance policy. At first, we paid the annual premium and then the premiums were paid from the yearly dividend. I see that the taxable amount is net of the cash value – premiums paid. Is this the same ruling when the dividends paid the premium? We reported interest on the dividends when filing our tax returns from the 1099 INT. Want to be sure the 1099 R will be correct. Thanks so much.
