Cashing in Life Insurance Policy

[Y-Body]

If you receive death benefits from a life insurance policy, that money is not taxable (or, at least, was not in 2000).

What about money from cashing in a life insurance policy taken out on you when you were a young child?

A small $1K policy was paid up decades ago and has been increasing in value since - worth over $4K now according to a statement from MetLife that followed a chain of old addresses to eventually arrive here. (That trail alone rates a comment ).

So any tax people or accountants online on this holiday? Yeah, I know I should ask a local accountant, but this is OT.

[DAB]

whatcha gonna buy me?

[lspencer534]

It's taxable. The only thing is whether the gain is treated as ordinary income or a long-term capital gain.

[VITE1]

Originally Posted by lspencer534

It's taxable. The only thing is whether the gain is treated as ordinary income or a long-term capital gain.

[DAB]

Originally Posted by DAB

whatcha gonna buy me?

Originally Posted by lspencer534

It's taxable. The only thing is whether the gain is treated as ordinary income or a long-term capital gain.

well crap, ok, whatcha gonna buy me that's on sale?

[Bill]

Taxes? We don't need to pay no stinkin' taxes.

Take The Money And Run - The Steve Miller Band (Lyrics + HQ) - YouTube

[Y-Body]

Originally Posted by DAB

well crap, ok, whatcha gonna buy me that's on sale?

Will check Lowes for a package of assorted sandpaper.
And maybe double-sided tape so you can make pads for a Black & Decker palm sander.

[Y-Body]

Originally Posted by lspencer534

It's taxable. The only thing is whether the gain is treated as ordinary income or a long-term capital gain.

Originally Posted by VITE1

Guess I will wait until December to cash in and send an estimated quarterly check, and then file in January to get it back.

[DAB]

Originally Posted by Y-Body

Will check Lowes for a package of assorted sandpaper.
And maybe double-sided tape so you can make pads for a Black & Decker palm sander.

[Mike Mercury]

Originally Posted by Y-Body

palm sander.

is that the new name for a Fleshlight ?

[mrvette]

Take the ins. co. check to their bank and present for payment.....jeez.....

[Bill]

Originally Posted by mrvette

Take the ins. co. check to their bank and present for payment.....jeez.....

There will still be a 1099.

[MrPeabody]

Cash it in the Cayman Islands and have a nice vacation.

[Y-Body]

Originally Posted by mrvette

Take the ins. co. check to their bank and present for payment....

Cash in: After I surrender the policy at some time in the future, they will then send me a check.

[Rob]

I am trying to figure out this insurance crap myself. I need to get some insurance on my wife and not sure about what kind to get.

Do I just get term life?

[DAB]

on your wife, or for your wife?

typically, you'd want life insurance to cover the loss of an income stream. to cover basic living costs, including perhaps the cost of college for rotten kids.

for your case, i'd look into insurance to cover your loss of income. i'm guessing Mrs. Rob is not legally permitted to have a job here. so she would not be able to make it on her own if you get squished by a large bus.

[Rob]

Originally Posted by DAB

on your wife, or for your wife?

typically, you'd want life insurance to cover the loss of an income stream. to cover basic living costs, including perhaps the cost of college for rotten kids.

for your case, i'd look into insurance to cover your loss of income. i'm guessing Mrs. Rob is not legally permitted to have a job here. so she would not be able to make it on her own if you get squished by a large bus.

I have lots of coverage....so she will be well taken care of if the bacon ever decides to turn on me.

However, I need to get coverage on her, so that the boys are taken care of in case something was to happen to her.

She and JC both have green cards and social security numbers. We got those about a month after they arrived in the US, it was getting their resident visas changed that took 6 months.

I just don't understand if I should do term life or whole life. Term life (30 year) is much cheaper until year 30, then it is stupid expensive.

[DAB]

if you were to lose your wife, you would have to hire someone to care for your children while you were at work, until they were old enough to not need such care. if your child was to pass away, while an emotional loss, your financial loss would be pretty minimal.

find a good, independent insurance agent, talk it thru. i don't have such coverage. if i die, Leah is on her own, and Mrs. DAB gets my retirement account.

[JRD77VET]

Originally Posted by Dixievet

I have lots of coverage....so she will be well taken care of if the bacon ever decides to turn on me.

However, I need to get coverage on her, so that the boys are taken care of in case something was to happen to her.

She and JC both have green cards and social security numbers. We got those about a month after they arrived in the US, it was getting their resident visas changed that took 6 months.

I just don't understand if I should do term life or whole life. Term life (30 year) is much cheaper until year 30, then it is stupid expensive.

One question to ask about term or whole life is life time costs. I was smart ( lucky ) enough to take mine out when I was about 25. I've been paying into it and now it's paying for itself. I'll have to kick funds in again around age 78 or so.

Jeff