Definition of "Cash withdrawals"

Sharon G. White real estate agent

Written by

Sharon G. Whiteelite badge icon

HomeSmart Corporate - Houston

Removal of money from an individual life insurance policy or an employee benefit plan. A cash withdrawal from a life insurance policy reduces the death benefit by the amount of the withdrawal plus interest thereon. When a cash withdrawal is made from an employee benefit such as a pension plan, the employee usually forfeits all benefits purchased on the employee's behalf by the employer.

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