Sentences with phrase «cash value of the death benefit»

Alternatively, the nominee can also avail the Cash Value of the death benefit before the end of the term in which case the benefit will be higher of 10 times the annual premium paid or 105 % of all premiums paid discounted @ 10 %

The nominee may avail the Cash value of the death benefit prior to the end of the term where the value will be higher of 10 times the annual premium of 105 % of all premiums paid discounted @ 10 %.

The nominee also has an option to take the cash value of the death benefit at any point during the policy term.

The nominee has an option to take the cash value of the death benefit on or after the death of the life insured.

The Cash Value of the Death Benefit is higher of 105 % of all premiums paid or 10 times of the annualized premium or present value of the guaranteed payouts.

Not exact matches

Of course, the policy's cash value changes over time and is lower than the total sum of the death benefit it provideOf course, the policy's cash value changes over time and is lower than the total sum of the death benefit it provideof the death benefit it provides.

Due to the lifetime coverage and cash value, whole life insurance costs considerably more, meaning it can easily come to 10 times the cost of a term policy with the same death benefit.

The sum of money can be the policy's death benefit, its cash value or a predetermined sum.

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

This is known as a partial surrender, which reduces the cash surrender value of the policy and the death benefit amounts.

Please note that the policy's death benefit and cash value will be reduced by the amount of any loans or withdrawals you take.

While the cash value feature is an attractive option it's important to remember, though, that tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Some permanent policies are eligible to receive dividends, and although they aren't guaranteed, they help to increase the cash value and death benefit of the policy.

The table below shows an example of how the premium, cash value, and death benefit work with an ROP policy.

Had the individual purchased permanent life insurance, he or she could have access to a potentially significant source of supplemental retirement income in the future (depending on the policy type), while preserving the death benefit in perpetuity (note, however, that the death benefit and cash value of a policy is reduced in the event of a loan or partial surrender, and the chance of lapsing the policy increases).

Also, tapping into the cash value of a life insurance policy reduces its value and death benefit and increases the chance the policy will lapse.

Since the premiums are higher and the death benefit is initially lower, a greater portion of the premium is added to the policy cash value, which then grows interest - free inside the contract.

The payment of the accelerated death benefit reduces the stated face amount and stated cash value.

The projected cash values are a function of your age at the time of application, the target death benefit, the average accredited interest rate, and whether you choose Option A or Option B.

In a nutshell, while most whole life insurance is fixated on maximizing the death benefit of a policy and just allowing cash values to grow over time, strategic self banking focuses on maximizing life insurance cash values, so the whole life insurance plan can be used strategically as a savings and personal financing vehicle for the purpose of recapturing your cost of capital incurred when having to deal with third party lenders or using your own cash.

The cash values accumulate more quickly because of the higher initial premiums and lower initial death benefit.

Naturally, a policy buyer would prefer the insured to be elderly, in poor health, with a policy that has low cash value and a high death benefit, because all of these factors might increase the buyer's yield - to - maturity on the policy when you die.

Use of the accelerated death benefit with permanent policies may increase countable assets if the amount advanced exceeds the cash surrender value.

Aside from the obvious value of receiving a large amount of cash as a lump sum, there are some risks with choosing an annuity to receive the death benefit.

You have great surety about the death benefit, cash values, and rates of return if you continue making timely premium payments.

Whole Life Insurance Definition: also known as ordinary life insurance, it is a type of permanent life insurance policy that offers a guaranteed death benefit, guaranteed fixed premium, guaranteed cash value and guaranteed access to the policy's cash value through loans and withdrawals.

Make sure the policy you choose has the coverage you need in terms of level premiums, death benefits and cash value when it matures.

This type of policy builds cash value and has level premiums, but the death benefits are limited to between $ 5,000 and $ 25,000.

The sum of money can be the policy's death benefit, its cash value or a predetermined sum.

Eventually, the cash value makes up all of the death benefit.

You can change the death benefits during the life of the policy, usually after passing a medical examination, and you can pay premiums from your accumulated cash value.

Include the death benefit and cash surrender value — if any — of each policy, as well as the names of the insurance companies and the beneficiaries.

The cash value accumulation then slows again as the policy holder ages and more of the premium is applied to the death benefits.

Filed Under: Banking Advice Tagged With: angry retail banker, Bureau of Labor and Statistics, captive agent, cash value, death benefit, insurance agent, insurance broker, life insurance, policy, PolicyGenius, premium, quote, retail banker, retail banking, term life insurance, universal life insurance, variable life insurance, variable universal life insurance, whole life insurance

Creating a high cash value life insurance policy gives you the benefit of a policy that grows cash value quickly, that will also grow your death benefit as you get older.

Loans and partial withdrawals will decrease the death benefit and cash value of your life insurance policy and may be subject to policy limitations and income tax.

The main difference between term life and permanent insurance is that term insurance only pays death benefits to your beneficiaries, while permanent life insurance pays out death benefits and accumulates cash value which will continue to build up over the life of the policy.

Investment - grade is the type of life insurance that is optimized for death benefit performance, in contrast to high cash value life insurance.

The benefit of combining the two insurances into one policy is you get life insurance death benefit coverage, help with your long - term care services, cash value growth that can be accessed via policy loans, with full cash surrender value plus return of premium if necessary.

* Cash values and death benefits can rise and fall based on the performance of your investment choices.

In either of these cases, provincial legislation protects the entire policy — including the death benefit and cash value — from the claims of creditors of the policy owner during his lifetime and after death.

The death benefit is comprised of the full accumulated cash value of the account minus any previous withdrawals.

Commuted Settlement Should immediate liquidity of remaining cash value be desired by the owner or a lump sum death benefit be desired by the beneficiary (ies), Bankers Life Insurance Company is willing to process a commuted settlement

If you are considering permanent life insurance — such as whole life, universal life, or variable life insurance — you probably know that these types of policies provide both death benefits and cash value accumulation.

In addition to paying death benefits, it also has a cash value accumulation feature which grows over the life of the policy.

While the primary purpose of life insurance is to provide a death benefit to those you leave behind, some life insurance policies have a cash - out value as well.

Keep in mind that if you've borrowed against the cash value of your policy and pass away, the loan will be deducted from the policy's death benefit.

Dividends can be used to purchase additional paid - up insurance, further increasing the death benefit and cash value growth of the policy.

Whole life insurance (cash value life insurance) offers a permanent accruing death benefit as well as accruing cash value within the policy over the life of the policy holder based upon mortality tables.

This allows continuous compounding of your wealth, for you in terms of tax free accrual of cash value and for your loved ones in terms of an accruing death benefit.