An insured decided to surrender his Whole Life insurance policy which he purchased 30 years ago. The insured was paying annual premiums of $500 while the policy was in force (which added up t0 $15,000). When he surrendered the policy, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

Have you ever struggled to answer the question “An insured decided to surrender his Whole Life insurance policy which he purchased 30 years ago. The insured was paying annual premiums of $500 while the policy was in force (which added up t0 $15,000). When he surrendered the policy, the cash surrender value was $18,000. What part of the surrender value would be income taxable?” in relation to the concept of in relation to the concept of Insurance? There’s no need to worry about it anymore. This post contains the correct answer to your question.

An insured decided to surrender his Whole Life insurance policy which he purchased 30 years ago. The insured was paying annual premiums of $500 while the policy was in force (which added up t0 $15,000). When he surrendered the policy, the cash surrender value was $18,000. What part of the surrender value would be income taxable?

Options:

  • A. $1,000
  • B. $3,000
  • C. $15,000
  • D. $18,000

The Correct Answer Is:

  • B. $3,000

Conclusion

The answer to your question “An insured decided to surrender his Whole Life insurance policy which he purchased 30 years ago. The insured was paying annual premiums of $500 while the policy was in force (which added up t0 $15,000). When he surrendered the policy, the cash surrender value was $18,000. What part of the surrender value would be income taxable?” should now be clear for you. I appreciate you coming here to find the answer to your question and best wishes for your preparation related to various topics of Insurance.

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