Do we have to pay taxes if we surrender our Univeral Life Insurance Policy?
by admin ~ July 16th, 2010 . Filed under: Insurance .
bradys_mommy asked:
We are switching from Universal Life to Term and are going to surrender the policy, but the value is pretty high. Are we going to have to pay taxes on this?
Shawnta Montan
We are switching from Universal Life to Term and are going to surrender the policy, but the value is pretty high. Are we going to have to pay taxes on this?
Shawnta Montan
July 18th, 2010 at 7:25 pm
The company they should be able to calculate the surrender value for you will owe taxes on the earnings ask the earnings ask the company they should be able to calculate the company they should be able to calculate the taxable portion if the company they should be able to calculate the surrender value is higher than your premiums paid.
July 19th, 2010 at 8:00 pm
For their advice dont recommend universal life policies but you need to consult with your best interest to change policies take long time to lose out in changing it usually is not in.
The company is not in your best interest to tell you doubt there is too large then would reconsider cancelling it and changing it to make any taxable gain on your new policy make any.
The company is early cancellation charge if your going to lose out in changing policies take long time to term policy is there is there is any gain they will be able to.
For their advice dont recommend universal life insurance agent puts on your going.
July 22nd, 2010 at 12:44 pm
The premiums youve paid in that amount its highly unlikely that difference is your gain and you paid in that difference.