Llife insurance dividends used to reduce the premiums are not taxale, but what about those dividends used to buy more ins

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1. 

   Ryan Davidson

   Elizabethtown Litigation Lawyer

   Contributor Level 12

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   Answered December 09, 2012 09:57. Generally speaking, life insurance dividends are not taxable until they equal the net you've paid in premium. Once you hit that point, then yes, they're taxable.

   This answer does not constitute legal advice and does not establish an attorney-client relationship.

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2. Licensed in WI

   

   David McCormick

   Milwaukee Personal Injury Lawyer

   Contributor Level 20

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   Answered December 09, 2012 19:19. I agree.

   DISCLAIMER: David J. McCormick is licensed to practice law in the State of Wisconsin and this answer is being... moreDISCLAIMER: David J. McCormick is licensed to practice law in the State of Wisconsin and this answer is being provided for informational purposes only because the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship. less

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3. 

   Evan A NielsenPro

   Redlands Tax Lawyer

   Contributor Level 17

   

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   Answered December 10, 2012 16:44. Not until they exceed certain limits. Your Insurance Agent should be knowledgeable in this area, and while not a tax attorney, the company he represents likely has some on staff so get his take on the issues and if it doesn't make sense, you'll find plenty here who can do the same.
   
   Good luck.
   
   Evan A. Nielsen
   
   1255 W. Colton Ave., #506 | Redlands, CA 92374
   Main: 909.363.4658 | Fax: 480.304.3211
   Evan.Nielsen@NLGLaw.com
   www.NielsenLawGroup.net
   
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   Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational... moreEvan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney. less

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