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I have a life insurance policy that has been listed as the…

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I have a life insurance...
I have a life insurance policy that has been listed as the beneficiary is my estate. I was supposed to be paid for by retirement money. Somehow things were overlooked and was never paid by my retirement money. Is it possible to correct the situation . In essence it was paid with post-tax dollars
Submitted: 11 months ago.Category: Finance
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Answered in 13 hours by:
9/11/2017
Financial Professional: Lane, JD, CFP, MBA, CRPS replied 11 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,901
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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The beneficiary can be changed by the owner of the policy. A life insurance contract has three parties; Owner, Insured, and Beneficiary. ... You can look at the contract to see who the owner is.

...

The insurance company will provide a form for the owner to change the beneficiary (if that's an objective here).

...

The beneficiary, however, is simply the person or other entity that receives the death benefit at the insured's death.

...

The kind of living benefits you mention come either from withdrawals (called surrenders) and loans against the contract.

...

One method for getting money out of the contract is to surrender to basis and then loan. Keep in mind, however, that if so much cash is withdrawn that the policy can no longer cover the cost of insurance that's coming out of the cash value (or being covered by premiums, or both) the policy can lapse, which creates Taxable income AND a 10% penalty tax if you are under age 59 and 1/2.

...

It is ALSO the owner that has the ability to take these surrenders and loans.

...

Please let me know what questions you have from here

Lane

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