I lost my brother two years ago and he was only 23 years old. My parents bought life insurance for him, putting in 10k, never expecting him to die so soon. My brother had gotten married about a year ...
They cover nothing for obesity too!! But about the smoking aids, I think that is wrong. Wouldnt you think that your employer would want you to quit smoking before you have to have them pay for cancer ...
My future husband is a divirced man. His ex wife has a 1/2 million $ life insurance policy on him. I plan to have one one both of us after we are married. Is she still able to keep hers and benefit ...
Neurologists offices will only let u in the door with insurance because its too expensive. Of course to see a neurologist there has to be a possibly big problem, this has all been very stressfull and ...
It depends on the type of policy. In most cases, you have to pay taxes on any amount over what you paid on the policy.
In regards to dividends on any insurance policy, that is a return of OVERPAID premiums. Money that has already been taxed.
Ask you agent or the company itself. Different policies are taxed differently upon surrender.
Instead of surrendering, contemplate the other options offered by the carrier.
If you do not have an agent, open an old phone book. Look under insurance in the yellow pages. Find someone with your last name or the next in alphabetical order (this keeps Adams from getting all the calls.) The person should hold a CLU (Chartered Life Underwriter) designation. If the person does not, continue on until you find a CLU.
That person can answer your questions with authority.
Policies ARE NOT taxed differently. They are ALL taxed exactly the same (well...unless they're a modified endowment contract, but other than that the same...). What you get out minus what you paid in is the amount you'd pay taxes on. Naturally if that's negative then you'd pay no taxes.
It depends if you get more cash out of it than you paid in.
Ask your insurance company before you cash it in. You might have a taxable gain if you have had a policy a very long time. Ask them. Other alternitives to cashing it in are withdrawing dividends if you have some or taking a loan. Or you may want to wait until January to cash in the policy if you do have a taxable gain so you can put off putting it on your tax return for another year.
Bottom line is ask your insurance company if you will have a taxable gain if you cash in the policy and ask for alternitives to getting at some of the cash.
You will have to pay taxes on the earnings above the premiums that you have paid in. It is usually taxed as interest income and the insurance company will file the 1099.