Help with Basis of my Life Insurance

[Mable443]

Hello Life Insurance People,

I am considering a cash out of my universal life insurance policy but cannot figure out the basis used to calculate my gain. Looking at my statement I have the following numbers (rounded).

Total Cash Value: $10,000
Total Premiums: $20,000
Total Net Paid: $13,000
Total Interest Earned: $8,000
Total Expenses: $11,000
Loan Balance $3,000

My thought is my basis is $20,000. But I can't say for sure. Are there any life insurance experts out there who might be able to help!

Thanks!
Mable

 

[VolAgent]

I suspect Net Paid reflects your basis. Basis is whatever you have paid into the policy minus whatever you have taken out. It appears you have an outstanding loan and perhaps a withdrawal in the past as well.

Your insurance company should be able to tell you exactly what your basis is.