swsop
06-08-2006, 01:58 PM
Greetings All, :rolleyes:
Could it be that You (or an elderly parent) may have a life insurance policy
that's no longer needed nor wanted. In many cases, premiums still
must be paid. You can surrender the policy but that may trigger
a large income tax bill, if investment income has accumulated
inside the policy.
Instead of canceling the policy, investigate selling it. Life
insurance policies are now being purchased by third parties for
cash. In particular, if the insured individual is age 70 with
some medical condition, a policy sale may bring more cash, after
tax, than a surrender. The buyer will continue to pay the
premiums and eventually collect the death benefit.
An experienced life insurance agent can help you locate buyers.
Ideally, you'll sell to an institution such as a bank or a hedge
fund that will buy the policy as part of an investment strategy.
That may make you feel more comfortable than you would if an
individual investor was going to collect on the death of the
insured person.
SWSOP
Could it be that You (or an elderly parent) may have a life insurance policy
that's no longer needed nor wanted. In many cases, premiums still
must be paid. You can surrender the policy but that may trigger
a large income tax bill, if investment income has accumulated
inside the policy.
Instead of canceling the policy, investigate selling it. Life
insurance policies are now being purchased by third parties for
cash. In particular, if the insured individual is age 70 with
some medical condition, a policy sale may bring more cash, after
tax, than a surrender. The buyer will continue to pay the
premiums and eventually collect the death benefit.
An experienced life insurance agent can help you locate buyers.
Ideally, you'll sell to an institution such as a bank or a hedge
fund that will buy the policy as part of an investment strategy.
That may make you feel more comfortable than you would if an
individual investor was going to collect on the death of the
insured person.
SWSOP