Sentences with phrase «under endowment policy»

Under an endowment policy, bonuses include Simple Reversionary Bonus and Terminal Bonus is added to the sum assured and payable on death or maturity under the policy.

This is the maturity benefit under an endowment policy.

Not exact matches

For a permanent life insurance policy to qualify for tax advantages under the I.R.S. Code, the policy must be a life insurance contract NOT be a modified endowment contract («MEC»).

If the policy lapses, matures, is surrendered or becomes a modified endowment, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for disbursement of policy cash values.

Proceeds: The amount payable under the terms of a life insurance policy upon the insured's death or upon the maturity of an endowment.

The policy has a risk free component under which a certain sum is assured, some endowment policies may also include profit component but that is not guaranteed.

Under current federal tax rules, loans taken will generally be free of current income tax as long as the policy remains in effect until the insured's death, does not lapse or matures, and is not a modified endowment contract.

Under current federal tax rules, loans taken will generally be free of current income tax as long as the policy remains in effect until the insured's death, does not lapse or mature, and is not a modified endowment contract.

Categorized under Special Plans, LIC Jeevan Saral is, in fact, an endowment policy with a lot of flexibilities that is usually available only with unit linked insurance plans (ULIPs).

The statements made above assume the policy remains in force, it isn't a modified endowment contract and the policy qualifies as life insurance under Internal Revenue Code, Section 7702.

Hence any money back received as part of the product structure or amount accumulated under a traditional endowment or unit linked plan will simply be payable to the beneficiary at the maturity of the policy.

The IRS covers this in Section 264 (a)(1) and provides that there is no deduction allowed for premiums paid on any life insurance policy, or endowment or annuity contract, if the taxpayer is directly or indirectly a beneficiary under the policy or contract.

Unlike term plans which pay out the sum assured, along with profits, only in case of an eventuality over the policy term, endowment planspay out the sum assured under both scenarios — death and survival.

In the case that you are not satisfied with the endowment policy or it is not fulfilling your requirements, you are under no obligation to continue with it.

If the policy lapses, matures, is surrendered, or becomes a modified endowment, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for distributions of policy cash values.

This is a traditional participating endowment plan under which survival benefits payable every year from 5th policy anniversary till maturity and life insurance benefit.

If the policy lapses, matures, is surrendered or becomes a modified endowment, the loan balance at such time would generally be viewed as distributed and taxable under the general rules for disbursement of policy cash values.

Under current Federal tax rules, loans taken will generally be free of current income tax as long as the policy remains in effect until the insured's death, does not lapse or mature, and is not a modified endowment contract.

An endowment plan may also have riders that increase the amount of cover that a policyholder has by protecting him or her from risks that are not covered under the main policy.

For a permanent life insurance policy to qualify for tax advantages under the I.R.S. Code, the policy must be a life insurance contract NOT be a modified endowment contract («MEC»).

Unlike term plans which pay out the sum assured, along with profits, only in case of an eventuality over the policy term, endowment plans pay out the sum assured under both scenarios — death and survival.

With so many benefits under a single policy, it is very much necessary for a buyer to understand the key aspects about endowment plans.

The death benefit paid under the plan is the sum assured plus the accrued bonus (if it is a with profit endowment policy) or only sum assured (if it is a non profit endowment policy) where as maturity benefits are sum assured plus accumulated bonus or guaranteed additions by the insurer.

Traditional endowment plans are those plans that offer insurance plus investment under a single policy.

With an endowment plan, you can avail the option to attach riders or add on covers to enhance the protection under your policy.

Though I already have an endowment policy for Rs. 23 lakh for which I pay a yearly premium of Rs. 84,000, I feel I am under - insured.

For example, you might leave an endowment trust to your favorite charity, provide care for your favorite pet for the rest of her life, and leave sizable inheritances for each of your children, all under the same life insurance policy.