Life Insurance Information:Tax liability for senior cashing in insurance policy?
Article Summary:
Freda Lockhart asked about a concern of hers:
Is there a tax liability for senior cashing in insurance policy?
so…..John M replied:
What kind of tax liability would my father have for cashing in a 1.5 million dollar life insurance policy? He’s 75, has a modest pension
Article Content:
Freda Lockhart asked about a concern of hers:
Is there a tax liability for senior cashing in insurance policy?
so…..John M replied:
What kind of tax liability would my father have for cashing in a 1.5 million dollar life insurance policy? He’s 75, has a modest pension and investments, and collects social security. Are there any options he should consider in terms of when he cashes this in? We checked with the company and its just a matter of filling out a form to get the proceeds of the policy, so the main issue remaining is are there any tax angles to consider. Thanks!
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