 right if it goes down in value there's no taxes at the end if they take so many fees out of it that the net net net to you is no gain there's no taxes at the end oh and by the way when you borrow money even if it's your own money you're borrowing which is what a whole life is borrowed money never has taxes you go get a loan at the bank they don't give you a tax on that loan there's no income tax on borrowed money even if you're borrowing your own money