B Owns A Whole Life Policy at Life

B Owns A Whole Life Policy. Let’s assume that abc inc. The cost basis inthe policy is the sum of all your insurance payments.if your cashvalue balance is higher than the amount you paid in premiums, the remaining money represents your taxable gains.

You cannot invest in a whole life insurance policy (unless you are in the life settlement business) b/c it’s not an investment. The premium in year 1 is $5,000. You determine how long your coverage lasts;

Person who owns the policy. Person who collects the death benefit when the insured person dies. B owns a whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of additional whole life. For instance, a husband might purchase an insurance policy on his own life to protect his wife.