Category: Reader Questions
Cash Surrender Value of Life Insurance
I bought a whole life cash surrender value policy a number of years ago. When I die will my beneficiaries have to pay tax on the cash value? If so, would I be better off cashing in this policy and making another type of investment? Richard Crew, Beeville, Texas Good question, Richard. The proceeds from [...]
Tax Free Life Insurance Withdrawal
Reader Question I need to borrow against my Life Insurance but I was told I would have to pay tax on any withdrawals. If this is true at what tax rate would I be assessed? Sincerely, Alfred in Oklahoma Thank you Alfred for your question. If you have a variable and traditional whole life policies, [...]
Surrendering Life Insurance Policy
Reader Question: What are the consequences of surrendering my Life Insurance Policy? I’m very confused; will you explain this to me? Thank you, Deana Thank you for your question, Deana. When you surrender your Life Insurance you are canceling the policy altogether. In these difficult economic times you may consider liquidating assets for cash; you [...]
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