"_JP" <YamYam[at]nospamsplease.megapathdsl.net> wrote in message news:104k8kp7avel633[at]corp.supernews.com...
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Federal INCOME tax free ! ! ! ! Could be State Income taxable
and / or Federal ESTATE taxable...............



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The Cost Basis of ANY Life Insurance policy, is the
TOTAL premiums "paid in to date". That would not only
include the C.O.I., but any & all riders.........

Cal Lester CLU

Would it be the same way with VUL? I know the death benefit is totally tax
free no matter how much more money the beneficiary gets paid than the
initial face amount (if there was increase) and the total premium payment.
However, if one's surrendering his/her VUL policy, what is the cost base?
Would it be the total premium payment, or the total premium payment less the
total of the money spent on the cost of insurance (in other words, the
actual amount of money that has been used for the investment)?

Thank you.


"cal-lester" <cal-lester[at]comcast.net> wrote in message
news:m_q1c.451813$I06.5070163[at]attbi_s01...
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astonmartinthe3rd[at]juno.com (Tony Starks),

<< <i> I am considering a asset backed/unit-linked + term insurance policy
The term will run for 15 years
I invest after tax dollars
The gains on the policy roll up tax-free.</i> >
It seems I've heard of these in the UK and South Africa. Are you located in
either of these or somewhere else?

"Tony Starks" <astonmartinthe3rd[at]juno.com> wrote in message news:e41a0eef.0403022041.7cc2f364[at]posting.google.com...
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I am not familiar with the above terminology,
I will try to give you some BASIC info

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There is NO CASH VALUE in a
15 year Term Policy

If you are contribution MORE than the C.O.I
(Cost of Insurance), then those dollars are
going into some form of INVESTMENT vehicle.

Generaly speaking, when you surrender the
"CONTRACT", IF there is any GAIN on those
Invested dollars, then they are Income taxable.

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It makes no difference who the beneficiary of
the Life Insurance is, IF the contract is SURRENDERED
at the END of the Term Period, any Income Tax due
would be attributed to YOU.

However IF you DIE during the Term Period, then the
FACE Amount of the Term Polcy would be payable
to a named beneficiary, Income Tax Free.

As to the value of the INVESTED amount at YOUR DEATH,
any amount OVER & ABOVE the total amount that YOU
paid-in in all probabilty would be income taxable

Cal Lester CLU

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I am considering a asset backed/unit-linked + term insurance policy
The term will run for 15 years
I invest after tax dollars
The gains on the policy roll up tax-free.


I have a few questions that I'm hoping someone could help clarify for
me



1. I was told that at the end of the term is the cash value of the
account taxable or is it that only the interest earned off the cash
value after the end of the term is taxable.
2. If I pay the contributions to the account but I am not the
beneficiary is the amount taxable at the end of the term, or does the
beneficiary get taxed on what they receive?

Thanks In Advance

Tony Starks