I have a friend who owns a WL (NML)policy on her ex-husband. Actually it's a variable whole life. Candidly, I don't deal with WL too much so I don't want to give her bad advice. Here is the situation:
The DB is around $360,000 and she wants to hold onto it until he dies so "she can throw a party" (her words...LOL).
She paid premiums of around $4k per year for over 20 years and recently stopped and is letting the policy/dividends pay them. There is now over $160,000 of cash surrender value.
She would like to use some of the cash, without jeapordizing the death benefit. Could she withdraw "up to basis" (probably a bit more than $90k) so there are no taxes and still have enough cash inside to carry the policy?
She likely needs to call them to get an inforce, but I figured I'd throw it out here to see if I can learn something. The variable nature is a wildcard and is she takes cash (or a loan) she may be best to go with a fixed account or something same with low volatility. Agree?
The DB is around $360,000 and she wants to hold onto it until he dies so "she can throw a party" (her words...LOL).
She paid premiums of around $4k per year for over 20 years and recently stopped and is letting the policy/dividends pay them. There is now over $160,000 of cash surrender value.
She would like to use some of the cash, without jeapordizing the death benefit. Could she withdraw "up to basis" (probably a bit more than $90k) so there are no taxes and still have enough cash inside to carry the policy?
She likely needs to call them to get an inforce, but I figured I'd throw it out here to see if I can learn something. The variable nature is a wildcard and is she takes cash (or a loan) she may be best to go with a fixed account or something same with low volatility. Agree?