Kelly has a universal life policy with a face value of $500,000. The cash surrender value of the policy is $185,200 and Kelly ha

Question

1 year ago

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s paid $131,000 in premiums. The NCPI is $77,000. What is the ACB of the policy?

1 answer:

FinnZ [79.3K] · Answer 1 · 2023-08-24T09:40:19+03:00

The adjusted cost basis of the policy is $185,200.

<h3>How to calculate the ACB?</h3>

It should be noted that the adjusted cost basis is simply the sum of premiums paid less the accumulation of the cost.

Here, the adjusted cost basis will be the The cash surrender value of the policy which is $185,200.

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