Only upon withdrawal of the money are taxes due on the growth portion. (pocketsense.com)
The funds that are in the cash - value component of the policy are allowed to grow on a tax - deferred basis, meaning that there will be on tax due on this growth unless or until the money is withdrawn. (goodfinancialcents.com)
Additionally, the taxes due on the growth of the investments are deferred until distribution begins at retirement. (iraaa.org)