You need to contact the insurance company to find out what portion of the remaining cash value may be taxable to you. It all depends on where the money came from to buy the policy, and whether your withdrawals (borrowings) were from the original investment or the income earned within the policy. Most people want to leave at least enough for burial expenses, but if you want to purchase a prepaid burial package, this might be the money that allows you to do this. Then you won’t have to rely on your relatives to follow your wishes. Again, contact the insurance company for specific details on the value of the policy and the tax status.