Minimum Deposit Whole Life Insurance

Definition of "Minimum deposit whole life insurance"

Jacques Handal real estate agent

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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
 
 
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