Saturday, May 27, 2006
In this insurance, you are making the two payments: one for your life insurance coverage and another for the investment portion of the contract. Here increase in payment duration; it creates more cash surrender value. This means that if you surrender the contract, you can receive your cash back for the investment portion of the prior payments but you will not receive insurance premiums back.
If you decide to take money, you will have to know exactly what you paid into the investment portion of the contract. Insurance company will keep track of the cost basis in the investment side of a policy. The insurance value is not taxable to the beneficiary, but the value of the insurance and investment component are included in the value of your estate for estate-tax purposes.
posted by renaa
@ 6:33 PM
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