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Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120819  
Subject: Re: Life Insurance and Taxes Date: 2/21/2000 7:27 AM
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I have several 25-30 year old, whole life ins. policies where the cash value is almost as much as the face amount of the policy.

Yearly the ins. co. sends me the interest income 1099 which I claim and pay taxes on.

Am I correct that since this cash value is accumulated interest, which has been claimed and taxed, cashing in these policies would not now have any tax liabilities?


Thanks for any help, GO
==========

I am no life insurance expert and I would think the agent who wrote the policies could define this for you exactly,

But I would say your general assumption is correct, there may be an additional amount of interest reported to you when you cash the policies due to the earnings accumulated since the last time the interest was allocated to you.


Pete
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