This is a cross-examine just about surrendering a natural life insurance police, but I hold a problem.?
I have a dynamic life insurance policy that I be told I could surrender and use for my daughters college fund. The amount is nearly $7000. I am the owner of the policy and I am the one who is insured. Here is the problem: I got the papers in the correspondence that I need to sign and I saw that where the SPOUSE have to sign, it had my ex-husbands name. I call the insurance company and was told that because I bought the policy while I was married to him, it is considered community property (I live surrounded by a community property state) he has to sign the paper until that time I can send it back to the insurance company. Is this right? When we divorced he kept the house and lands, his vehicle, his retirement and all his personal property, I got to save my jeep, my retirement and my personal property. Wouldnt the insurance policy be considered MY PROPERTY? I really dont want to have to give him partly when my daughter really needs the money for school.
Answers:
presumably this be addressed in court. except you should talk to your lawyer. the initial consult should be free for this problem. unless you hold a good relationship with your ex later maby since it is for his child he will be gracious. if not sue him for half of your mutual child's nurture.
You will need to have your ex-spouse sign the surrender documents which will, logically, educate him on the fact that in attendance is cash here.
You are best advised to speak to your ex-spouse, explaining why you are surrendering the policy and what the proceeds are to be used for. With devout luck, he will understand and sign off for your daughter's schooling. If he's a real jerk, he can emergency half of the accrued change value, according to law.
I am contained by the insurance and financial services business and have been for abundant years. If you were my client, here is what I would suggest:
(1) Unless the life insurance policy be specifically referenced by contract number in your divorce settlement and released to you, it's most likely that contract is still considered to be community property. "Personal Property" would be things resembling jewelry, clothing, laptop - things that could easily be identified as yours- not a contract as with the policy. I also suspect that your former spouse be named as primary beneficiary and if that's the case, you would requirement his signature to change beneficiary.
(2) If you don't want to bring this situation to the attention of your former spouse or don't believe that you would get his cooperation in need a hassle, there is another route you could take. You can ring up the insurance company and ask for a maximum loan against the policy. Depending upon how long you have owned the policy, you may be able to return with 90% or so of the cash value (in your casing that would be $6,300). Depending upon how long you have owned the policy, you may have to do this through a combination of loan and subtraction. The policyowner service people can assist you. You should be able to get hold of that handled right over the phone and have a check contained by your hands within ten business days.
Now, you may be thinking "but what almost this loan"? "Do I have to pay it posterior?" A policyowner is NEVER required to pay back a loan. You are simply loaning out your own money. Once you purloin the loan, you will probably want to stop premium payments (since you were considering surrendering the policy anyway). If you get billed quarterly, semi-annually, or annually you can simply pay no attention to the bills. Eventually the policy will lapse. If you pay through electronic transfer, you will requirement to ask your insurance company to change the premium mode to annual- then cut the bills when they arrive. Again, eventually the policy will lapse and that will be the end of the matter.
Now, in that is a caveat! Any time you surrender a life insurance policy where the currency value is larger than the sum of all premiums remunerated into the contract, you will be required to pay federal income tax on the difference (the gain). If you thieve a loan against the policy and stop all premium payments, eventually the policy will lapse. In this case, not until but when the policy eventually lapse (which could be several years from now), you will then be required to pay federal income levy on the difference between what you paid into the policy and what you pulled out of the policy (the loan not the cash value). If in attendance is no gain or you get less spinal column than the sum of all premium payments then no taxes will be due.
Hope that help?
Well, in community property states, ANYTHING you buy while married belongs to both of you.
But it should have be declared an asset during the divorce, and the judge should have assigned it. So I'm going to right to be heard, contact the attorney who handled your divorce, and ask them. Source(s): agent, 21+ years
Related Questions:
Answers:
presumably this be addressed in court. except you should talk to your lawyer. the initial consult should be free for this problem. unless you hold a good relationship with your ex later maby since it is for his child he will be gracious. if not sue him for half of your mutual child's nurture.
You will need to have your ex-spouse sign the surrender documents which will, logically, educate him on the fact that in attendance is cash here.
You are best advised to speak to your ex-spouse, explaining why you are surrendering the policy and what the proceeds are to be used for. With devout luck, he will understand and sign off for your daughter's schooling. If he's a real jerk, he can emergency half of the accrued change value, according to law.
I am contained by the insurance and financial services business and have been for abundant years. If you were my client, here is what I would suggest:
(1) Unless the life insurance policy be specifically referenced by contract number in your divorce settlement and released to you, it's most likely that contract is still considered to be community property. "Personal Property" would be things resembling jewelry, clothing, laptop - things that could easily be identified as yours- not a contract as with the policy. I also suspect that your former spouse be named as primary beneficiary and if that's the case, you would requirement his signature to change beneficiary.
(2) If you don't want to bring this situation to the attention of your former spouse or don't believe that you would get his cooperation in need a hassle, there is another route you could take. You can ring up the insurance company and ask for a maximum loan against the policy. Depending upon how long you have owned the policy, you may be able to return with 90% or so of the cash value (in your casing that would be $6,300). Depending upon how long you have owned the policy, you may have to do this through a combination of loan and subtraction. The policyowner service people can assist you. You should be able to get hold of that handled right over the phone and have a check contained by your hands within ten business days.
Now, you may be thinking "but what almost this loan"? "Do I have to pay it posterior?" A policyowner is NEVER required to pay back a loan. You are simply loaning out your own money. Once you purloin the loan, you will probably want to stop premium payments (since you were considering surrendering the policy anyway). If you get billed quarterly, semi-annually, or annually you can simply pay no attention to the bills. Eventually the policy will lapse. If you pay through electronic transfer, you will requirement to ask your insurance company to change the premium mode to annual- then cut the bills when they arrive. Again, eventually the policy will lapse and that will be the end of the matter.
Now, in that is a caveat! Any time you surrender a life insurance policy where the currency value is larger than the sum of all premiums remunerated into the contract, you will be required to pay federal income tax on the difference (the gain). If you thieve a loan against the policy and stop all premium payments, eventually the policy will lapse. In this case, not until but when the policy eventually lapse (which could be several years from now), you will then be required to pay federal income levy on the difference between what you paid into the policy and what you pulled out of the policy (the loan not the cash value). If in attendance is no gain or you get less spinal column than the sum of all premium payments then no taxes will be due.
Hope that help?
Well, in community property states, ANYTHING you buy while married belongs to both of you.
But it should have be declared an asset during the divorce, and the judge should have assigned it. So I'm going to right to be heard, contact the attorney who handled your divorce, and ask them. Source(s): agent, 21+ years
Related Questions:
- I'm thinking something like selling existence and robustness insurance! strictly commission!?
- What is the procedure for if an american dies contained by india and have a go insurance policy from usa.?
- Should I whip out a loan or borrow against my natural life insurance policy?
- What is enthusiasm insurance?
- I necessitate abet on starting a natural life insurance policy.?