I'm holding a whole life policy and thinking of cashing it in. I retired over a year ago and see no need to keep it but concerned about taxes. Called the company Mass Mutual and if I cash it in by the end of this year it has a cash value of 148K. 60K in dividends would be taxable. It's a 500K policy and I've owned it for 21years. The yearly cost is $6875.00 most of which at this point is paid by the dividends but I still have to put about 2 to 3K in a year.
What do you guys think I should do with it? Also are the dividends taxed as earned income?
What do you guys think I should do with it? Also are the dividends taxed as earned income?