I am guessing that as there normally is "no profit", eg you pay in on average more than comes out there will be no tax anyway. You can only be taxed on profit, not on your money that has already been subject to tax. The object of "whole life" is to cover say a mortgage if you die before it is fully paid up. It is a guarantee of or rather the insuring the paying of the said mortgage. 90% of the time the insurance wins as they have your money, get the use of it, and if you die whilst it is current, pays out. Many many whole life policies are given up early as soon as mortgages are paid up and the money just paid instead to a building society. The reason being that "whole life" policies are only any good for an insurance reason. You are therefore better off putting money into something else.