Question

Taxes on accumulated interest in the cash value account of a Whole Life policy, if required, are due------------?

A. Annually.
B. At Surrender.
C. At Policy Maturity.
D. Upon Withdrawal.

Answer 1

Taxes on accumulated interest in the cash value account of a Whole Life policy, if required, are due at policy maturity.

Step-by-step explanation:

The taxes on accumulated interest in the cash value account of a Whole Life policy, if required, are due at policy maturity.

Whole life insurance is a type of permanent life insurance that has a cash value component. The cash value grows over time as interest is credited to the account. If you have accumulated interest in this cash value account, you will owe taxes on that interest when the policy reaches maturity.