What are the tax consequences of selling my policy?
A. We cannot give tax advice. In some circumstances, the money you receive from the sale of your policy may be exempt from federal income tax and state income tax. In addition, federal law requires that our escrow agent send an Internal Revenue Service Form 1099 to the owner of the policy and the IRS. This cannot be avoided by directing that the proceeds be paid to another party. We recommend you check with a tax professional in your state for the latest information.
