How Do You Surrender A Taxed Life Insurance Policy?
Life insurance policies are structured to have the policy cash value grow under a tax-deferred umbrella. Premiums paid into the policy have already been taxed and will not be taxed again, but earnings are subject to income tax regulations. Surrendering a life insurance policy is a simple process, but you need to understand where fees are applied to prevent any surprises in cash or taxes. Contact your life insurance carrier. You may do this by phone or visit the agent who sold you the policy. The phone number and location address should be on your policy face page or on a recent statement. Review the terms of the policy with the insurance company representative. You want to know exactly how much was paid in premiums and what is the cash value of the policy. Subtract the aggregate premium from the cash value amount to determine the amount of income that will be taxable. Establish where you are in the term of the life insurance policy. Life insurance policies require that you maintain the
