Archive for the ‘Life Insurance’ Category

Cancellation of Life Insurance Policy Results in Taxable Income

Published: March 14th, 2011

By: Brian M. Malec

In Sanders v. U.S., T.C. Memo 2010-279, petitioner purchased a whole life policy in 1979 and paid premiums until March 2006. The policy allowed petitioner to borrow up to the policy’s cash value, using the policy as security. Interest accrued on the loans at 8%. By its terms, the policy terminated if any unpaid loan, [...]