No, They will ask on the application though if you have other coverage to prevent over insurance and to make sure there is insurable interest. So, if you need more coverage, buy it!!!! It may or may not be advantages to cancel prior coverage. It might have lower premiums as you were younger when you bought it and your health might have been better, etc. It’s no problem to have two or more policies, one from employer, etc.
Insurance Information Institute – Life Section
Life Insurance Law FAQ’s – Free Advise.com
LIFE INSURANCE BASICS
Do I or my beneficiaries have to pay Income Tax on the proceeds?
No, IRC 101 A
TYPES OF LIFE INSURANCE
| What are the types of term life insurance policies?
What are the different types of permanent life insurance policies?
Why should I purchase permanent insurance?
BUYING AND SAVING MONEY
How should I choose what type of life insurance to buy?
How do I pick a life insurance company?
How can I assess the financial strength of an insurance company?
How should I choose a life insurance agent?
How can I save money on life insurance?
SPECIAL BUYING SITUATIONS
| What is “burial insurance”?
Should I buy life insurance on my child’s life?
Do “empty nesters” need life insurance?
KEEPING YOUR LIFE INSURANCE CURRENT
| How should I organize and store my life insurance records?
How often should I review my policy?
| If I can’t pay my premium, what should I do?
Where can I get additional information on life insurance?
- FACTS AND STATISTICS: Life Insurance What is Insurable Interest and why is it necessary?
- Do I have to tell the truth on my application?
What about suicide or euthanasia?
2 year contestibility Kantor & Kantor & suicide clause
Free Advise.com Life Insurance Law
Viatical & Life Settlements
Actual PAID Claim – Premium Total $35K Benefit $100,839.53
my mother wants to cash in her life insurance, she has approx 9,000, is it better to cash out or take out a loan?
Generally it’s better to take a loan. That way you still have the policy in force. You don’t have to pay back a loan. The company might bill you for the interest though. Does she need the whole 9K now or would it be better to borrow say $1k/year?
if she takes a loan does she need to pay it back, if she takes cash does she have to pay taxes?
Depends on how much she has paid into the policy. Anything less than $9K – there would be tax on the difference. That’s why a loan might be better. What’s her tax bracket? $1k/year would be lower taxes than 9K at one time.
her income is approx (social security only) $7,644/yr, which ss is not suppose be taxable.
Steve Shorr explains how to use the FREE ONLINE 24/7Term Quote Engine
Other pages in the Life & Estate Planning Section
- FAQ’s Detailed from Tax Facts
- How to file a Life Insurance Claim?
- State Guarantee Fund
- Broker only
- Business – Key Man Life
- Confidential Life Insurance
- Estate Planning
- Beneficiary under 18? Is that permitted?
- Estate & Gift Taxes
- Health Care Directives
- Living Trust
- Questionnaire for Estate Planning
- How much Life Insurance do I need?
- Rated – Surcharged Policies
- Term Life Quotes
- Universal Life Insurance