Life Insurance Termination
Do you have an inside buildup of cash value in your life insurance policy?
Are you taking loans from the policy or letting the policy ride with premiums being paid from the cash value?
If yes, make sure you know the tax consequences of your actions.
Many taxpayers borrow against their life insurance cash surrender values. In fact, a common strategy is to borrow cash value during your lifetime and then have the insurance company offset the death benefit by the outstanding loan amount when you die.
But when a life insurance policy terminates before death, the cash surrender value is taxable and the government is looking for tax dollars.
If you would like to review your life insurance policy with me to see if you are looking at a tax surprise, please call me on my direct line at 804-338-4927