Likewise, the Tax Court has held that the cash surrender values
of paid-up additions are not constructively received by the policyholder.
7m expense associated with decreases in cash surrender values
of company-owned life insurance policies.
08 per share) decrease in the cash surrender values
of company-owned life insurance (COLI) policies, while the corresponding prior-year quarter included a USD3.
A section 1035 exchange may provide a higher death benefit and cash surrender values
than the original policy, but even if it does improve upon the old policy, it may not be the optimal solution.
Holders of life insurance policies with cash surrender values
would be notified of that amount on an annual basis according to legislation introduced by Assemblyman Arthur J.
the premiums paid less dividends declared, if any) over the increase in cash surrender values
is considered an insurance expense.
These arrangements provide limited protection of policy cash surrender values
from declines in the values of the policies' underlying investments.
14 provides: "The cash surrender values
of life insurance policies issued upon the lives of citizens or residents of the state and the proceeds of annuity contracts issued to citizens or residents of the state, upon whatever form, shall not in any case be liable to attachment, garnishment or legal process in favor of any creditor of the person whose life is so insured or of any creditor of the person who is the beneficiary of such annuity contract, unless the insurance policy or annuity contract was effected for the benefit of such creditor.
First, when compared to CAUL, SGULs may generate only modest cash surrender values
that may vanish by age 85 to 95.
Cash surrender values
will generally be assets of the company if the company owns the policy and is the beneficiary.
Considering that cash surrender values
average just 4% of policy face amounts, the decision to recommend a life settlement is an easy one for CPAs advising employers or clients unaware of the potential economic gain from these hidden assets.
Fair valuation of such an option, as well as an accurate assessment of the cash surrender values
, are clearly crucial topics in the management of a life insurance company, both on the solvency and on the competitiveness sides.