Recently, our 20 year term life insurance was set to expire. Because my husband has stage 4 cancer, has had a heart attack and several strokes, it would be impossible to re-insure him. We did, however, without forethought, pay for the terminal illness policy, and were able to cash in the policy due to that.
Does anyone know if we will have to pay taxes in this? The company took 8% out of the original amount, but we're still concerned we may need to set aside an amount for taxes.
Does anyone know if we will have to pay taxes in this? The company took 8% out of the original amount, but we're still concerned we may need to set aside an amount for taxes.