 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.