My dad lives with me and I completely support him. he's only 60 years old but has problems with his eyes and cant work. The problem is, he wont get life insurance. He says when he dies the VA ...
This is for a project about future living plans, and I'm not too sure if it's necessary to pay for monthly housing insurance if you're renting an apartment....
Last night my best friend was assaulted and punched in the face. He went to the ER and it turns out his jaw is broken in two places. The hospital can't get him into the OR for THREE days- his ...
I need a low cost health insurance plan for my son. I live in orange county, CA and I DO NOT qualify for medi-cal or healthy families. I make too much money. I do not need health insurance for myself ...
I just got a ticket for not stopping at a stop sign do u know how much my insurance go up? Additional Details i live in cal sac and this is my first ticket will it go up?...
Whether its whole life, universal life, or variable life, when you pay your premiums, your premiums are being paid for two things: 1) Term insurance and 2) Cash value.
we are paying a premium of Rs7015 from past 9 year(starting from 1998) and still we hav to pay this amt of premium till 2012.the maturity value will be 100000Rs,so kindly get me the surrender ...
Of a participating whole Life policy is cash surrendered. which is taxable?
1 Participating dividends and any amount over the premiums paid is taxable
2 The cash amount plus the interest earned on policies loans plus dividends less premiums paid are taxable.
3 Only the surrender amount less the premiums paid is taxable
4 Only interest earned and dividends are taxable
It's not 1, since any dividends you receive means you are overpaying your premiums. Its defined as a refund in insurance industry.
It's not 2. Since any interest on policy loans has no relation to you. Only the company has to report it. Its like paying interest on credit card bills.
The answer is 3. When you surrender a policy, you are subjected to surrender charges and taxes. The IRS recognize you have receive additional income and you will be tax at ordinary income tax rate.
It's not 4 since interest earned on policies are tax-deferred.
cpd401
To borrow an expression from Mr T ...
Pity the fool ... who has to cut and paste his homework online because he can't read the textbook.
And pity the fool ... who hires him.
Carrie
anything gained over the amount paid in to the policy is taxable
jesus91874
Dividends in Life Insurance is a return of excess premium. By Definition!
With that understood, unless you got a HUGE %'age return on the DIVIDENDS, I wouldn't THINK that you would be TAXED at ALL!!
SEE AN ACCOUNTANT!!
mbrcatz
1., but you realize this NEVER happens in the real world.
BShakey
3 -- dividends in a participating policy are not taxable. Interest they earn is -- if they are left to accumulate at interest.
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