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Hidden costs on policies

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Posted: Sat Jan 17, 2009 5:01 am   Post subject: Hidden costs on policies   In my state there was no tax on the amount gained after maturity of policy. But now I will have to make room for this while calculating as the ministry is planning for some tax provisions within a year or two. Also if I withdraw a partcular amt at a time, it adds a tax of 4% which is much high if I withraw money within a day after maturity of policy. Fortunately there are tax exemptions on a particular amount of investments on policies. Any such issues in the US?	VIJAYRAJ Member Joined: 11 Dec 2008 Posts: 73 0.09 Dollars($)
Posted: Sat Jan 17, 2009 9:02 am   Post subject:    Life insurance proceedings are tax free in USA. And I guess its the same everywhere. However, the insurance experts will shorts around with more insight. _________________ Register Now to have your Insurance queries solved.	anonymous 12 Guest
Posted: Sat Jan 17, 2009 10:25 pm   Post subject:    Where are you located?	dgoldenz Senior member Joined: 10 Jan 2009 Posts: 392 Location: Virginia 5.24 Dollars($)
Posted: Sun Jan 18, 2009 12:37 am   Post subject:    VIJAYRAJ in the USA the cash value grows tax deferred. The beneficiary receives the death benefit income tax free. If you realize a gain in the policy and surrendered the policy for its cash a person in the USA would have to pay ordinary income tax on the gain. The dirty little secret regarding life insurance death benefits in the USA is the fact that those same proceeds that were received by a spouse INCOME TAX FREE are included in that person's estate for Federal Estate Tax purposes when the second spouse dies. In the USA agents affectionately refer to this as TAXATION WITHOUT RESPIRATION. _________________ Gary Spicuzza, *SAFE Copyright 1956. No Rights Reserved. *Self Appointed Financial Expert	GarySpicuzza Forum Expert Joined: 03 Apr 2008 Posts: 959 Location: West Pasco County, FL 242.78 Dollars($)

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