Life insurance policy withdrawals and loans are not considered to be taxable income, unless the policy has been lapsed or surrendered with an unpaid loan. In this case, the unpaid portion of the loan must be reported by the policy holder as taxable income. The amount that is reportable as income is known as __________.

Question

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Life insurance policy withdrawals and loans are not considered to be taxable income, unless the policy has been lapsed or surrendered with an unpaid loan. In this case, the unpaid portion of the loan must be reported by the policy holder as taxable income. The amount that is reportable as income is known as phantom income.

Life Insurance Policy Withdrawals and Loans Are Not Considered to Be