Insurance Agent Forum

[VolAgent]

Sportsnut, if you will have read the previous posts, you will notice I said that numerous time. Once the dividends taken in cash exceeds the cost basis, then it does become taxable. Thank you for pointing it out again, but you're a bit late to the party.

[LGilmore]

"Thank you for pointing it out again, but you're a bit late to the party."

Well, now he does have a point. Since dividends are the unused portion of a premium paid each year, it would take a great while (a lifetime) for the dividend "refund" to be greater than the premium side. Now I am just talking about the dividend, not the guaranteed part or PUA's or anything else that makes the policy grow.