New question in Life Insurance FAQ

Posted on July 10, 2012 and updated January 23, 2019 in Life Insurance Canada News, Life Insurance FAQ 1 min read

New question in Life Insurance FAQ:

My wife is 64and she had a whole life policy of $30.000 which was bought in 1989. As per the broker it has a cash value of around $10.000 next year if she wants to cash it next year is there any tax she has to pay? And if she cashes the whole amout will that consider as income?

The cash value is taxable on the amount over and above the adjusted cost base this amount is taxed as regular income you can get the adjusted cost basis from the insurance company

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