Will my whole life insurance policy rates increase year over year?
No, SBLI guarantees that your whole life insurance policy premium will never increase!
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What are the tax implications of transferring cash-value life insurance or annuities?
Section 1035 of the tax code allows for the tax-free exchange between like contracts: annuity to annuity, life insurance policy to life insurance policy, and life insurance policy to annuity. However, you cannot go from an annuity to a life insurance policy because of the additional benefits of the life policy face value. We advise you to check with your financial advisor or tax professional for further information.
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Is the cash value of a life insurance policy free from creditors if the Insured files for bankruptcy?
It depends. Bankruptcy is one of the few situations when state law may supersede federal law, so whether your cash value is protected from your creditors depends on federal and state law.
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I've been told to watch out for "churning". What does this mean?
You have a right to be concerned. "Churning" is when a life insurance representative convinces you to take the cash value from your life insurance policy and use it to buy a newer policy, which is often more expensive. What you're usually not told is that you're going to be starting over in terms of cash-value accumulation.
Why would a life insurance representative do this? Because he/she receives a new sales commission from your new policy!
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