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Life Insurance Policy Cash Value To Buy A Motorcycle?

Question by blurr4 | Posted in Insurance

I have a life insurance policy that was captivated out on me when i was born. I am now 19 and it has some cash value and i want to use it to buy a new motorcycle. Is this a very good idea?
3000 or 4000's not gonna pay for much.
The policy transfered into my name when i turned 18. I called and asked and they said it has about that much well-heeled that i can "barrow"

Answer: You can Refer to the "cash value" and it will deplete the death benefit by that amount.

The "loan" will then accrue interest but if the interest on the cash value is more than that of the allowance, it can still be worth something when you die. If you have a policy that buys "paid up additions". the death advantage can increase over time.

Usually pretty cheap way to obtain money - remarkably since your parents or grandparents probably
 
 

Whole Life Insurance Policy Cash In Value On Taxes?

Question by toddrws | Posted in United States

My trouble quit her job. She was contributing around $10 a month to a 25,000 whole life insurance. We got a letter that said the cash value was around $700. If we cash it in is there a tax tariff to us? The letter stated that the cash value will be used to pay the insurance cost till it is depleted then the policy would be closed.

If we cash it in do we have to pay property gains or other cost on it. Or the monthly amount she has been contributing offset it??

Answer: The only subject that will be taxed is the difference between the total amount of premiums ($10 x # of months) and the $700.

If her total premiums is more than what the cash value is, no tax due. If the cash value is more than out-and-out premiums, she will owe income tax.

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What Is The Best Way To Cancel A Cash Value Life Insurance Policy.?

Question by Pat M | Posted in Personal Finance

I hanker after to keep the cash value invested, and would like to reduce the amount of penalty's that would be levied against it. I have done numerous studing on the question and have realized that this was a mistake and i got taken. I've been funding it for a little over a year and have about a thousand dollars in the cash value. The handing period is ten years. I've heard it is a good idea to role it over in a 1035 quarrel into a variable annuity with the same company to reduce the fee's.

Answer: What genre of insurance policy do you have? Why do you feel you got taken? Some insurance policies you can change the death benefit which will make the bring in and fees cheaper. You gotta understand, any investment is going to have fees. I tell on insurance, and I personally think insurance is a great investment. If you have questions maybe I can help. You can email me at hope2bgr8@yahoo.com. I can at least help you decide if it would be benficial to move it over to the Variable Annuity.

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Should Cash Value Of Life Insurance Policy Be Subject To Federal And FICA Taxes?

Question by bert | Posted in Insurance

The partnership i work for has the option to pay me the cash value of a life insurance policy when I retire. Is the cash value subject to Federal,State and FICA taxes?

Answer: Only if the cash value is GREATER than what you paid into it - then it becomes a "top gain" and you pay capital gains tax on the difference between what you paid into it, and what you got out of it.

It's NOT subject to FICA.

If it were a unofficial policy, I'd say, don't worry about it, because you NEVER get as much cash value out of it, as you've paid into it in premiums over the years, so it's a non-issue. But if it's through your EMPLOYER, then likely

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Can Or Will Cash Value Of Life Insurance Policy Be Used To Satisfy Debt In Bankruptcy?

Question by ronald f | Posted in Insurance

I have a all-inclusive life insurance policy which has a cash value that increases every year as the death benefit declines. Can this cash value be taken by ceditors if I pigeon-hole for bankruptcy

Answer: In most states, cash value is branch or substantially protected from creditor claims. This chart breaks it down by state:

http://mosessinger.com/articles/files/cr editprotec.htm

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Whole Life Verses Term Life Insurance – Who Wins? | Best Term Life ...

by admin

The two kinds you will see most often are articles life and whole life , so let’s set side by side whole life vs rates b standing life insurance. It is only just a prime life warranty policy with no extras. So if you pay your premiums for years you have nothing to show for it except that many companies will secure your reprove for a incontestable include of years from when you buy the policy, or at least limit the amount of expand. Comparing life insurance policies can be confusing, singularly if you don’t positive the contrariety dispute between the unusual types of life extend over present. When you buy relating to life , you are buying life pledge and nothing else....

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