Cash Value Life Insurance Calculator

Gold coins falling from the heavens







If you’re thinking about launching a small business, paying off debt, or updating your home, the cash you need might already be within your life insurance policy. How, you ask? We’ve partnered with Irving Life Solutions to offer you a simple tool that accurately calculates your life insurance cash value.


Just follow these simple steps to get started:


  1. Enter your current age or the age you'll be when your policy begins.

  2. Input the coverage amount for your policy.

  3. Finally, specify the duration of your policy, then click 'Calculate' to see your results.



5%


Cash Value Withdrawal Options

Interest Rate (%) Policy Amount ($) Cash Withdrawal Amount ($)
5.5% 100,000 5,500
6.0% 150,000 9,000
6.5% 200,000 13,000
6.6% 300,000 19,800
7.0% 400,000 28,000

How to calculate tax on life insurance cash surrender value


Life insurance policies can be great tools for financial planning. However, when it comes to cash surrender value, understanding the tax implications is key.


The cash surrender value is essentially the amount you'd receive if you were to surrender your policy, minus any fees or penalties. Depending on how much you've paid into the policy over the years, some or all of this amount may be taxable.


The first step is to determine the cost basis of your policy, which is generally the total premiums paid over time. If the cash surrender value exceeds this amount, the excess is considered taxable income.


To make this calculation, identify the total premiums paid into your policy. This is your initial investment.


Then, subtract the cost basis from the current cash surrender value. The remainder is subject to tax.


Knowing these numbers can help you make an informed decision, whether you're planning to cash out for retirement or start a new business. Thinking about turning that cash into a new venture?


Be sure to sign up for Super Easy CRM to streamline your business from day one. And if you're ready to enroll in the perfect life insurance plan that fits your unique circumstances, contact Irving Life Solutions today.


Matt Irving is the CEO of Super Easy Tech, LLC.
 
Matt is the CEO of Super Easy Tech and creator of Super Easy CRM. He is a passionate software engineer, tech blogger, and gamer. Feel free to connect on any of the platforms listed below.

Posted by: Matt Irving on 10/16/2024