Re: Re: Life Insurance Cash Out

[Guest guest]

can you take a loan against your insurance policy

or a loan against your house

i think it's called a home equity loan

i am aware of reverse mortgages, but don't know how they work

Pink Joyce R (IPF 3/06) IFA 5/09 Pennsylvania

Donate Life Listed 1/09 Inactive 4/09

www.transplantfund.org---

Subject: Re: Life Insurance Cash OutTo: Breathe-Support Date: Friday, January 22, 2010, 6:58 PM

Dyane/AdrienneLet me correct what I said and clarify Dyane's comment. Surrender of policy for cash. If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. In general, your cost (or investment in the contract) is the total of premiums that you paid for the life insurance policy, less any refunded premiums, rebates, dividends, or unrepaid loans that were not included in your income.So the answer is some portion is taxable and some isn't. There are also many special conditions applying to specific cases. For instance the accelerated death benefits refers to are not taxable.>> Sorry Income is Income is Income, except if it is on someone

who passed away.> > Dyane, 54, Phoenix, IIP 02 now NSIP 09, Breast Cancer, Psoriasis, Lipodermatosclerosi s, Diabetes, and now a RA like autoimmune component, yadda yadda yadda.> > > "Life is not a journey to the grave with intentions of arriving is a pretty, well-preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, chocolate in one hand, Margaritas in the other, loudly proclaiming "Holy **** What a ride!"."> > > > > > ____________ _________ _________ __> From: Adrienne Bishop eggie5909@.. .> To: Breathe-Support@ yahoogroups. com> Sent: Fri, January 22, 2010 4:20:06 PM> Subject: Life Insurance Cash Out> > > Does anyone know if you cash out a life insurance policy, do you have to pay taxes. I need to sell my house but I have many repairs to do and need the money from my life

insurance. I don't have children so I figure I could use the money rather than let it go to the state. Let me know your thoughts.> AB>