by myotherwon » Tue Jul 03, 2012 04:56 am
I want to surrender my northwestern mutual life insurance policy. I'm told I have a cost basis of $1036.63 and a total cash value of $115.98. Will I be able to get the cost basis back when I surrender?
Posted: Tue Jul 03, 2012 02:56 pm Post Subject:
Will I be able to get the cost basis back when I surrender?
NO. If you have $115.98 in cash value, that's all you will receive if you surrender the contract.
The only way to preserve your cost basis is to make a Section 1035 Exchange into another life insurance or annuity contract. That's probably not what you wanted to hear.
If you buy a can of beans, cook half of it, and decide you made a bad decision, you might get a refund from the grocery store by returning the unused portion. Life insurance is not like a can of beans. It's more like a pizza or a hamburger. After you've eaten it all, you can't get a refund.
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