Life insurance policy?????

I have a universal life policy that I'm thinking of cashing out. I am way over-insured right now. I've had it for over 15 years, and the cash value is about $14,000. I've had it long enough, there is no penalty for terminating it. My question is, if I roll it to a IRA, or some other investment, do I pay the taxes now? I don't "need" the money right now, and I'm not paying the premiums now, so it's getting smaller every month. Any help would be appreciated!!!!!!!!

its likely you'd lose at last 10% to uncle sam if you make an unqualified withdrawl, probably best to roll it over but read the small print

You need to find out what your cost basis is on the contract. This is usually the sum of all premiums paid over the life of the policy.  Any gain taken in excess of the cost basis will be taxed as ordinary income.  The cash value is reducing because cost of insurance/policy expenses are still being charged.  

Thanks for the replies. Kasper, I 'm sure the premiums are more than the cash value now. I just called, and the cash value and surrender value are the same amount. I just think if I cash it out, and put it in my bank account, the 11,600 (I was off on the value), will turn in to 8,000, or whatever the amount will be after they take the income tax. Or as you are saying, I never really made any "income".....