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|Subject: Re: Hi gang... wow!!!||Date: 9/14/2013 2:58 PM|
|Author: Rayvt||Number: 72830 of 74483|
intercst: If you don't keep the life insurance policy in force, all loans taken against it to date become taxable with accrued interest and penalties -- a likely very large number.
CC: You've got to 'splain real slooooooow to Rayvt. These are new concepts to him.
Hush, dear. Adults are trying to have a conversation.
intercst got it, you didn't.
A person who has a $6,000,000 account -- that's six million dollars -- has no financial reason to keep a life insurance policy for $250K. That's a round-off error that wouldn't even be noticed.
As intercst noted, one reason to keep it would be if dropping it would expose them to large taxes & penalties. Which wouldn't be the case here, because I only spoke of fees and expenses, with nary a mention of either cash value or loans.
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