When Should You Cash In A Life Insurance Policy?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaYou should seek professional tax advise before cashing in cash value life insurance. There may be ordinary income tax consequences of surrendering your policy if there is gain in the contract. Keep in mind, that policy loans received or internal policy loans beyond basis will also be treated as taxable gain.Answered on July 21, 2013+01+1 this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.If you have Term Life Insurance, there is usually no cash value to cash in (unless you had Return of Premium Term Life Insurance, in which case the premiums will be refund if the policy was kept for the entire term). If you have a Whole Life or Universal Life policy, you may not want to ever cash it in. Whole Life, and Universal Life (if the policy was guaranteed not to lapse) are permanent policies that you can hang onto for the rest of your life, if you wish.Answered on September 11, 2013flag this answer
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