Do you pay taxes upon withdrawal of cash accumulation account from whole life insurance policy?

Yes, to the extent that there has been an increase over the amount paid into the policy. It works similiar to an IRA and you will receive a 1099-R form for reporting purposes of paying income taxes on the amount if you surrender the policy to withdraw the entire cash value. However, many whole life policies have a provision that allows you to borrow from the cash value up to a certain amount without having to pay taxes. You will pay a small amount of interest on the amount borrowed but you really don't have to ever pay it back. If you don't pay it back the amount owed will be deducted from the death benefit when you die. I suggest you check with the company before doing any of this to make sure I am correct as different policies have different provisions on borrowing.