Can you withdraw both insurance costs and premiums paid tax free from

[Guest david e. g. roberts]

does it really work this way. If a person contributed $500 towards Ins. Premiums and that money grew to $1500 the first $500 can come out of the policy tax free. Then if the Insurance cost was another $500 they would also be able to withdraw that $500 without any taxable implications.

[Cathy from Chicago]

no, it doesn't work that way. The cost basis is $500 so any amounts withdrawn (not due to borrowing) would be treated as ordinary income.