Why Single Premium Life Insurance Policies are Not a Good Short-Term Investment

Not generally. Single premium policies typically have significant surrender charges in the early years. Also, because newly-issued policies are likely to be MECs, if the policyowner terminates the policy before age 59½, he or she may incurs a 10 percent penalty tax in addition to the income tax payable on any taxable gain from the terminated policy.

Discover our articles archive here.

View the latest policies Lifequotes has to offer.

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

Leave a Comment