Life insurance policy
I’m 70 years old. No children. I have a net cash value insurance policy worth $17,000. Is there any downside to cashing out the policy and reinvesting the money? (I don’t anticipate my extended family needing the death benefit to pay for my funeral expenses).
Terry Says
Before casing in the policy, ask the insurance company if any of the proceeds will be be considered taxable as ordinary income. You’ll get a might be surprised. And make sure that extra income wouldn’t impact your tax bracket, Medicare premiums, or seniors property tax freeze.
