When To Surrender A Life Insurance Policy?
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaSurrendering a life insurance policy requires careful consideration. The termination of coverage should never occur when you have family members, business partners dependent on your economic value and charities who depend on your contributions. Always have continuing coverage. Keep in mind that surrendering cash value life insurance with gain in the contract will trigger an ordinary income tax event and if you're receiving Social Security benefits, they may be be taxed as well.Answered on September 14, 2013flag this answer
10968 POINTSview profileTim WilhoitOwner, Your Friend 4 Life, Brentwood TNWhen considering the surrender of a life insurance policy you have to ask yourself some questions. Does anyone I care about suffer without this life insurance policy? Who needs my income? Who would be responsible for my debt? I am wealthy enough to be sure my loved ones are taken care of financially? If you find that there is no longer that need for life insurance, then it is time to surrender the policy. Remember the increase in cash value that accumulated is now taxable as income upon surrender.Answered on July 14, 2014flag this answer
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