Cut tax while cashing in a whole life policy

Roy and his wife both have whole life insurance policies. Her cash surrender value with paid up additions is around $200,000. His policy is about $190,000. They have no children. They both have pension plans and comfortable assets. They are looking at surrendering one if not both insurance plans. They ask Lorne Marr of LSM insurance if he has any suggestions to help minimize the share the taxman will get. The insurance expert provides the couple with the insights