Minimum Deposit Whole Life Insurance

Definition of "Minimum deposit whole life insurance"

Jacques Handal real estate agent

Written by

Jacques Handalelite badge icon

Success Real Estate

Ordinary life insurance that generates a first year cash value from the payment of the first year premium. Using this cash value, loans could be made to finance premiums due in the future, with the interest deductible for tax purposes under specified IRS rules. However, the 1986 Tax Code revision appears to have canceled this arrangement.

Comments for Minimum Deposit Whole Life Insurance

Darnell Browning Darnell Browning said:

policy cancel in 2017 after having it 36years .now being hit with 95,000of ordinary income yet never got a daime in cash out .are there any option on how it will be taxed

Aug 10, 2018  15:01:47

 
Real Estate Agent

Hey Darnell,

First of all, we're sorry to hear.
Probably. But because of the sensitive matter, we highly recommend you contact an accountant or a real estate lawyer to help you understand all your options. Good luck!

Aug 13, 2018  15:11:15
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Model state law providing guidelines by regulators for valuation of securities on the books of insurance companies. The act has two sections: one for valuation of fixed rate bonds and debt ...

System of charges to an insured that fluctuates according to the loss experience of that insured. This is a form of experience rating. ...

Possibility of loss associated with water transportation, including hull damage or destruction, cargo damage or destruction, liability to others for bodily injury, and property damage or ...

Individual who represents a ceding insurance company in placing its business with a re insurer. ...

Death caused by a person without legal justification. Wrongful death may be the result of negligence, such as when a drunken driver hits and kills someone; or it may be intentional, as when ...

System for calculating the relationship between a pension plan's present cost and its present future benefits. This relationship shows the extent to which a pension plan's benefits are ...

Commercial liability insurance form providing coverage for an insured business in the event of a pollution liability suit. The insurance provides claims made basis liability coverage. ...

Choice among the following options made by retiree prior to retirement concerning the distribution of benefits: option since all income payments cease upon the death of the retiree. Monthly ...

Coverage in the event of property damage or destruction resulting from wrongful installation of equipment. ...

Popular Insurance Questions