The Ins and Outs of a Life Insurance Policy Loan

The Ins and Outs of a Life Insurance Policy Loan

Life insurance policies have evolved into complex financial instruments that no longer simply share risks between an insurance company and the insured. Policyholders now have more control over the policy, which they can use to satisfy new needs and desires. In times of need, a policyholder can use their life insurance policy as collateral to take out a loan issued by their insurance company – known as a policy loan. However, policy loans are one…

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How to Avoid Scams When Assigning a Charity as a Beneficiary

How to Avoid Scams When Assigning a Charity as a Beneficiary

If you decide to make a beneficiary of your life insurance policy a charitable institution, make sure your choice is not an ongoing scam.

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Is a policy inside a qualified retirement a good idea?

Is a policy inside a qualified retirement a good idea?

Paying life insurance and annuity premiums with qualified-plan dollars is quite controversial. Every situation is different; some may benefit from a plan life this while others may not. A good place to start is by looking at a 403(b) plan, which is a tax-deferred retirement plan for employers of school and other nonprofit organizations.

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What taxes apply to policy loans?

What taxes apply to policy loans?

In the simplest of terms, a policy loan is an advancement of money that the policyholder must pay back under the terms of the policy. In 1986, The Tax Reform Act (TRA) magnified the tax ramifications of policy loans, which added new penalties and ultimately made this issue more complex.

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