TMTW#438 – Life Insurance Policy Loan: Can Be A Tax Nightmare

Tax and Money Tip of the Week:
Life Insurance Policy Loan: Can Be A Tax Nightmare
June 19, 2019 | No. 438

  • Do you have an insurance policy that has built up an internal cash value?
  • Are you taking loans from your policy, or letting the policy ride with premiums being paid from the cash value?

If the answers to these questions are “yes,” be very careful. You see, if you don’t handle things correctly, you can fall into the life insurance policy-loan trap. Allowing your life insurance policy cash-surrender value to pay your premiums could create nasty, unexpected surprise income taxes.

Read this article titled Life Insurance Policy Loan—A Tax Nightmare to help avoid serious problems.

Questions or Comments?
You can add comments on the blog, call 919-847-2981, or visit our web site. We look forward to hearing from you.

Mark Vitek, CPA/PFS, CFP®
…until next week

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