Sentences with phrase «since the death benefit»

The main advantage here is that the proceeds from the death benefit would not be included in the employee's taxable estate since the death benefit would pay out to the ILIT, thus avoiding exposure to the federal death tax.

Not many people are subject to an estate tax — it's only applicable for estates with a taxable value of $ 5.45 million, and Warren Buffett said in an interview that only 5,000 people would be subject to the estate tax in 2017 — but, since death benefits are almost always exempt from tax, it can be a great way to cover the estate tax and leave your money to your family.

We call this «stacking» and many people do this since the death benefit limits are so low.

Support of Children — Since the death benefit does not pass to the surviving spouse, it is usually purchased with a married couple's children in mind.

Since the death benefit on term life insurance is paid on less than 1 % of policies, there is relatively low risk to insurers.

Not many people are subject to an estate tax — it's only applicable for estates with a taxable value of $ 5.45 million, and noted rich person Warren Buffett said in an interview that only 5,000 people would be subject to the estate tax this year — but, since death benefits are almost always exempt from tax, it can be a great way to cover the estate tax and leave your money to your family.

For example, if you have a $ 250,000 policy with a $ 20,000 cash value and a level death benefit, you have only $ 230,000 of insurance, since the death benefit will include your $ 20,000.

Determining amounts to be received by multiple beneficiaries should be done as a percentage of the amount to be dispensed at the time of expiry since the death benefit of permanent policies may change as their cash values increase or decrease over time.

Since the death benefit will most likely exceed any amount you can afford to donate during your lifetime, naming a charity as a beneficiary is the most effective and affordable way to make a generous charitable donation.

Since the death benefits paid to charities are not subject to any tax, you can rest assured that all the proceeds of your policy will be paid in full to your chosen organization.

Since the death benefit on mortgage protection life insurance becomes less over time, this offsets the extra risk from the policyholder getting older.

Since the death benefit can decrease so much, you may be wondering just what the real benefits are of Protective Term Life insurance.

Since the death benefit is $ 250,000, the policy holder divides the death benefit by $ 1,000, to get 250.

However, since the death benefit will be 10 times single premium i.e. Rs 56 lacs, the proceeds will not be taxable.

On the other hand, highly investment - oriented products will typically have better claim settlement since the death benefit is a small component of the entire package.

You should definitely buy a term plan since the death benefit here is likely to be much higher than the traditional endowment plans you have.

Not exact matches

These insurance policies are less pricey than traditional life insurance, since they pay benefits only after the death of both husband and wife.

Since a funeral costs around $ 10,000 on average, guaranteed issue insurance should provide a large enough death benefit if you just want to take care of final expenses.

In this case, you would probably want to consider a guaranteed universal policy, since it provides a death benefit until 121 years of age (or whatever age you choose).

The taxable amount would be the the death benefit minus the value of whatever was paid to you, as well as any amount paid in premiums since they acquired the policy.

Accelerated death benefits are also known as «living benefits» since you are able to use portions of your policy's death benefit while you are still alive.

They have since posted variations of «well even if there's a higher death rate there are still other benefits / overall risk is low» blah blah.

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.

However, the death benefit and cash value can continue to grow with participating policies since the dividend can be applied to purchase additional paid - up life insurance coverage.

On the other hand, as long as premiums are paid, a permanent life insurance policy will always pay out a death benefit since it never expires.

You might choose a decreasing term policy for a similar term length and initial death benefit equal to the outstanding mortgage loan, since you know your spouse will be financially stable once the mortgage is paid off and you know the time it will take to pay back the loan.

However, since you are no longer the owner of the policy, you won't receive a tax credit when the death benefit is eventually paid.

Therefore, the primary value of a Gerber Life Grow - Up Plan is its initial death benefit, since it's sufficient to easily cover the costs of a funeral and counseling for family should your child pass away.

Since the underwriting is limited, the death benefits are as well, though this is fine if you're interested in final expense coverage as the average funeral costs around $ 10,000.

Since the insurer is guaranteed to pay a death benefit to your beneficiaries so long as all premiums are paid, permanent life insurance rates are significantly higher than those for term life insurance.

In this case, you would probably want to consider a guaranteed universal policy, since it provides a death benefit until 121 years of age (or whatever age you choose).

Since the plan also ensures that if he were to survive till the end of the policy term, he will receive all the premiums that he has paid over the entire term thus ensuring that he receives commensurate benefits for the premiums he invests whether it is in the form of the Death Benefit or Maturity Benefit.

Since a funeral costs around $ 10,000 on average, guaranteed issue insurance should provide a large enough death benefit if you just want to take care of final expenses.

On the other hand, if you've just purchased a home with your spouse, you might consider a decreasing term policy (since your mortgage balance decreases over time as you pay it off) with a death benefit equal to the size of your outstanding loan.

It could also truly be called «death insurance», since its primary objective is to pay a death benefit when the insured dies.

Since life insurance only pays out a death benefit when there is a death, the only way to cash in early is to use the life insurance as a savings vehicle.

Do not expect to die with term in force, since 99 % of policies expire without paying a death benefit claim.

Since they're better able to assess your risk through the health questions, this policy's death benefit can be as high as $ 50,000 in value, though this is still significantly lower than what is available through alternate insurers.

The insurance company is not actually paying anything extra since most policies are structured to pay the death benefit early at a specified amount.

The taxable amount would be the the death benefit minus the value of whatever was paid to you, as well as any amount paid in premiums since they acquired the policy.

It is so basic it should probably be called «death insurance» rather than life insurance, since your primary benefit is that it will pay out a death benefit to your beneficiary.

Additionally, maybe the best reason to opt for this would be to now apply for a greater death benefit since your premium would be lower.

Continuing under the assumption that you have a defined benefit pension plan that will pay you $ 50,000 per year until you pass away I would say that your pension plan is more similar to a life annuity rather than a GIC since a GIC comes to term whereas an annuity pays until death, but if you are trying to put a value on the holding of your pension plan I would say that yes, it is fair to count it as a million dollar GIC at 5 %.

Accelerated death benefits are also known as «living benefits» since you are able to use portions of your policy's death benefit while you are still alive.

In addition, since the amount of the death benefit will remain fixed throughout the term of the policy, the death benefit your family will receive will be higher.

After two years have passed since buying the final expense policy, your beneficiaries will receive the full death benefit amount no matter what causes your death.

My point being, is that since they don't give you both, you are really transferring the reponsiblity from them to you over time, your savings (that you lose) becomes part of the death benefit and they supliment it with less and less over the years so that it would equal the death benefit.

Since the insurance company must make a profit, and since they know they will always pay out on a whole life policy, whole life tends to be very expensive, and has lower «death» benefits than a term poSince the insurance company must make a profit, and since they know they will always pay out on a whole life policy, whole life tends to be very expensive, and has lower «death» benefits than a term posince they know they will always pay out on a whole life policy, whole life tends to be very expensive, and has lower «death» benefits than a term policy.

Since most policies expire without paying a death benefit, life insurance companies can sell these at a low price.

Since age 65 is commonly the age of retirement, this policy allows you to have a paid up policy (that continues to build cash value and grow your death benefit) at age 65, when most people need to cut back on their expenses.