What is the name of your state? Ohio
My husband took out a loan from his life ins. policy in 1991 or 1992. The interest has been accumulating in the policy and it is now in danger of lapsing. The current agent wants me to start repaying the loan at $200/mo. I had requested an illustration and this showed me putting in $1200 next year, $950 the following year, $750 for the next ten years, and then $4250 for 5 years and then I would not have to pay. If the policy averages 8%, then this scenario is fine. If the policy only does 6%, it lapses next year. I don't believe it makes sense to keep this policy, but I need to know if I am going to get a 1099 if I let this policy lapse. Please advise.
My husband took out a loan from his life ins. policy in 1991 or 1992. The interest has been accumulating in the policy and it is now in danger of lapsing. The current agent wants me to start repaying the loan at $200/mo. I had requested an illustration and this showed me putting in $1200 next year, $950 the following year, $750 for the next ten years, and then $4250 for 5 years and then I would not have to pay. If the policy averages 8%, then this scenario is fine. If the policy only does 6%, it lapses next year. I don't believe it makes sense to keep this policy, but I need to know if I am going to get a 1099 if I let this policy lapse. Please advise.