![]() ![]() Individual must be released by FBL Wealth Management, LLC to offer advisory services. Individual must be a registered representative of FBL Marketing Services, LLC or an investment adviser representative with FBL Wealth Management, LLC+ to discuss securities products. Advisory services offered through FBL Wealth Management, LLC+. Securities & services offered through FBL Marketing Services, LLC+, 5400 University Ave., West Des Moines, IA 50266, 877/860-2904, Member SIPC. Talk to your Farm Bureau agent to create a plan that’s right for you. Farm Bureau offers a range of life insurance products to meet your needs, including term life insurance. If you decide to cash out your whole life insurance policy, don’t risk going without coverage. If you end up short on cash and are having a difficult time continuing to pay your whole life insurance premium, you may be able to stop paying the premium out of pocket and instead use the cash value of your policy to cover the premium. There will also be a maximum loan amount you can receive from your policy talk with your local Farm Bureau agent to find out the maximum loan amount you can receive. If you don’t repay the loan or only pay a portion of it back, the balance of your outstanding loan would be deducted from your death benefit. Unless you pay the interest out of pocket, it will be added to your loan balance. Depending on the terms of your policy, the loan might be subject to interest. Instead, you’ll be borrowing money from the issuer and using your policy as collateral. ![]() However, you won’t be borrowing against your policy. Most cash-value policies allow you to borrow against your policy with a loan. Keep in mind, though, that cashing out your life insurance policy may leave you vulnerable to life’s uncertainties. Your death benefit will be reduced based on the amount you withdraw. Any withdrawals that exceed your basis, meaning you’re dipping into gains, will be taxed at your ordinary income rate. In fact, a whole life insurance cash-value withdrawal up to your policy basis, which is the amount of premiums you’ve paid into the policy, is typically non-taxable. Generally, you can withdraw a limited amount of cash from your whole life insurance policy. If you still need your life insurance policy, you have other options to withdraw cash and keep your life insurance policy in place: withdrawals, loans and premium payments are all options you should consider. ![]() Although surrendering your policy might get you the cash you need, it should be a last resort unless you have adequate life insurance coverage in place elsewhere. When you cancel your policy, your heirs will receive nothing from the policy when you die. By surrendering your policy, you are giving up the insurance policy and, in return, you’ll receive the cash value less any fees. If you’ve had your policy in force for a few years and it has accumulated some cash value, you can cancel the policy and take the surrender value in a cash payment. When it’s time to access the cash you’ve accumulated, there are a few different options: Surrender Your Policy As a policyholder, you’ll pay consistent premiums and have guaranteed cash value accumulation, making it ideal for people with long-term goals. Whole life insurance provides guaranteed protection for the entirety of your life. How to Access Cash from Your Whole Life Insurance Policy When you cash out a whole life insurance policy, you are not getting back your full premium contributions you will receive the full cash value of the policy. The second is the cash value, which is a savings account that’s funded by a portion of your premiums. The first is the face value, or the amount that will be paid to your beneficiaries when you die. A whole life insurance policy has two components. Making this decision starts with understanding how whole life insurance works. We’ll help you weigh the benefits and drawbacks of cashing out your whole life insurance policy. Taking the cash value from your whole life insurance is a big decision and can have a lasting impact on your financial future. ![]() If your kids have completed college or you’ve paid off your mortgage, you might be wondering if now’s the time to cash out your whole life insurance. ![]()
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