Taxable event

[ILLMAS]

If life insurance company uses your dividends to pay the policy annual premium and no 1099-div was issued so far, would this be considered a taxable event?

[Randall]

Would they get a 1099-DIV anyway?  This may just be 'interest' and inside buildup in the policy and he is using his policy cash value to pay premiums.  Unless he owns stock in the insurance company and received actual dividends, then he would get a 1099-DIV.

 

[jklcpa]

1 hour ago, ILLMAS said:

If life insurance company uses your dividends to pay the policy annual premium and no 1099-div was issued so far, would this be considered a taxable event?

Those dividends won't create a taxable event until the policy's cash value exceeds the total of premiums paid over the life of the policy.