Why Bailout Provisions do not Make Single Premium Life Insurance Policies Good Short Term Investments

Bailout provisions may eliminate or reduce surrender charges imposed by the insurer, but they cannot waive the penalty tax applicable to persons under age 59½ or return the mortality charges incurred within the policy. Generally, better short-term investments are available without the mortality charges and the potential penalty tax.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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