Skip to main content
No. of Recommendations: 2
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.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.