The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Cash value from life insurance taxable? Date:  11/8/2013  9:20 AM
Author:  mcnor Number:  119458 of 124773

..hoping someone can set me straight...I'm considering cashing in some long-held life insurance policies. I just don't ALL the coverage I have any longer and the cash value could best be deployed elsewhere.

The question; when the cash is distributed, is this considered ordinary income? I'm getting mixed signals as to that being the case..

Thanks for any input,

Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us