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Endowment Mortgage
Opsman
Posts: 1 Newbie
We took out an Endowment Policy to cover the main Mortgage and like everybody else, it is no longer going to meet its projection. We therefore took action to make up the shortfall and have twice refused permission for the payments to be increased on the basis of throwing good money after bad.
We have now been informed that the Endowment is considered to be Non Qualifying and any profit subject to Tax.
My question is:
Because the purpose of the policy has not changed and any monies paid out at maturity will be used to payoff that portion of the Mortgage debt why does the policy become taxable e.g. non qualifying?
We have now been informed that the Endowment is considered to be Non Qualifying and any profit subject to Tax.
My question is:
Because the purpose of the policy has not changed and any monies paid out at maturity will be used to payoff that portion of the Mortgage debt why does the policy become taxable e.g. non qualifying?
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Comments
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If it was a qualifying policy at outset then Im surprised. I think you will have to post detais of the policyI like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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like everybody else, it is no longer going to meet its projection.
Apart from those hitting target...Because the purpose of the policy has not changed and any monies paid out at maturity will be used to payoff that portion of the Mortgage debt why does the policy become taxable e.g. non qualifying?
It would only break qualifying rules if the premium has changed and the term has changed. If nothing has altered, then it is still qualifying.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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