Cash Surrender Insurance Policy Loans

Years back, when I was working for a small business, I tried to figure out how I was going to make payroll. The reason why was we were in a recession. Times were tough. I was worried and we were running out of options. I went through our books and thought of every possibility. Finally, I saw that we had a life insurance policy with cash surrender value. After a little research, I realized we could borrow on that cash surrender value. We did just that, avoiding a serious cash flow catastrophe. Moreover, cash surrender value loans are exempt from the imputing interest requirement for below market rate loans. #insurance #money #cashflows #loans #taxation

Categories: Tax