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Life Ins policy surrendered.....

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    #1

    Life Ins policy surrendered.....

    Its my understanding that there would only be a gain if the total premiums paid in were less then the cash value at time of surrender.

    Assuming there was a gain, what tax document would the Insurer issue to the the TP?
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    #2
    I believe

    that the Life Insurance Companies report on a 1099R - haven't seen one in a while.

    Sandy

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      #3
      The Life Insurance company will back out the cost of insurance and get to the investment side of the plan. This would be the same as an annuity, but without insurance to develop cost basis.
      Last edited by BOB W; 03-12-2010, 08:26 PM.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

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        #4
        I have not

        cashed in my policy, but I get a 1099-R each year for dividends paid in excess of premium due.

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          #5
          You must have had this policy a very long time if that is happening.

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