Sentences with phrase «access policy cash values»

These advantages include tax deferred growth as well as the potential to access policy cash values without paying taxes via withdrawals and policy loans.

Not exact matches

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.

Permanent insurance, which includes whole life and universal insurance policies, is for life: It provides a death benefit for as long as you pay the premium, but also may include cash value that can be accessed during the insured person's lifetime.1

This strategy is appropriate if you want to maintain access to the policy's cash surrender value during your lifetime but want to leave the death benefit proceeds to charity.

Any cash value in a life insurance policy can be accessed through policy loans and withdrawals income - tax - free that can help supplement retirement income or complement a college funding strategy.

As the policyowner accumulates cash value inside the policy, the person can access the cash value, through loans or partial surrenders, which can be used for a variety of personal needs, such as quick cash for an emergency or to help supplement retirement income.

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).

The cash value within the policy can be accessed at any time to supplement their retirement income or fund a grandchild's education.

Another way to access the cash value is to borrow from the policy.

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.

The policy will also terminate if you surrender it to access the cash value.

Returns are guaranteed and, in the event you have an emergency and need access to money, you can either access the policy's cash value through a loan or by surrendering the policy.

Certain types of life insurance policies, including variable life, cash value life insurance and whole life insurance, combine life insurance with a tax - deferred investment account, and provide tax - free access to the cash value of the policy.

This means that, while the policy's cash value will grow very slowly, it can continue to grow for decades and is available if your child or grandchild ever wants to access it.

Some permanent life insurance policies also have cash values that can be accessed throughout life for many purposes.

When you WITHDRAW your cash value you are removing it from the policy and therefore it will impact the cash value growth — policy loans are a better way to access the money in most situations.

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.

Both IUL and VUL policies provide permanent coverage, pay a lump sum death benefit to your beneficiary and provide cash value growth and access to your cash value via withdrawals or loans.

Borrowing against your cash value allow tax free access to the money in your policy.

Also, as permanent insurance, the cash value account in universal life grows tax - deferred and can be accessed by the policyholder in the form of loans or withdrawals, subject to any applicable policy provisions.

With a cash value policy, money can be accessed before death.

And don't forget that you can also access the growth of your account tax - free, by taking a life insurance policy loan (sometimes called a swap loan) against your cash value.

You can also access your policy's cash value via a withdrawal or loan for tax - free retirement income.

Life insurance policy loans are a unique way in which many policy holders access their cash value without incurring any tax hit.

As with other types of permanent insurance, you can access the cash value account in an IUL policy via withdrawals and loans.

The question of whether premiums are recognized as income for any of the above strategies is very fact specific, involving questions such as when the employee has access to the cash value in a insurance policy.

Therefore, if you use policy loans to access your cash value you may never have to pay taxes on your gains.

Access funds Your policy's cash value can be used for a variety of needs such as: education, retirement income and emergencies with no credit checks or application required.

You can access cash value, through loans and withdrawals, potentially free of current income tax as long as the policy stays in force until the Insured's death.

Both IUL and VUL policies provide lifetime coverage, pay a death benefit and allow access to cash value.

You may also access your cash value by surrendering (canceling) the policy.

With a new term policy, you won't have access to accumulating cash values like permanent policies offer, but you can be insured for another term at a significantly lower cost compared to permanent insurance.

... because as the policy vests to your key employee, the premiums can become tax deductible for your business AND prior to vesting, while your business owns the policy, you can access the cash value for your business operations for all of the other reasons discussed above.

Like a traditional Whole Life Insurance policy, a Child Life policy also builds cash value, and can be accessed in the future for expenses like school tuition, buying a new house, a vehicle, etc..

However, the good news is when properly funding a policy the cash builds quickly and you will have access to the cash value sooner rather than later.

Once your policy is paid, you can access its cash value in periodic payments, whenever you want (if your insurance needs decrease).

However, cash value accumulation isn't the usual emphasis of guaranteed universal life insurance, policies do allow for the accumulation of some cash value and allow you to access it.

And as with a universal life insurance policy, the funds in the IUL cash value account grows and can be accessed in the form of partial withdrawals or policy loans.

Life insurance provides the benefit of easy access to your policy's cash value, providing you with maximum control.

If you're a real estate investor, the cash value of your policy can be accessed for real estate investments and the return on investment can be exponential because you're making a return on the funds already in your policy... («it's your money») as well as the return on your real estate investment.

Life insurance policy loans allow access to your policy's cash value.

As long as you don't surrender the policy or let it lapse, you can access the cash value via policy loans without incurring a taxable event.

The cash value grows tax deferred and is accessed tax free via policy loans.

The cash value in the policy grows over time and can be accessed through surrendering the policy, withdrawing from the policy or taking out a policy loan.

Your NYL UL and NYL SUL policies have the potential to earn cash value, which can increase the death benefit your beneficiaries receive.2 Provided it's sufficient, your cash surrender value can be accessed through policy loans and partial surrenders1, 3 to buy a home, fund a child's education, or supplement retirement income.

Rather, if your equity is in your life insurance policy, apart from all the advantages listed below, you have unhindered access to your policy's cash value.

You might need to access your policy's cash value through loans or withdrawals to meet wealth transfer or retirement planning needs.

**** Accessing cash value of a life insurance policy will reduce death benefit.

Given that withdrawals are considered taxable income when they exceed the amount you have invested in an insurance policy (i.e. your Basis), loans are typically a better way of accessing your cash value if you intend to pay back the money at some point.

This option can provide money if you terminate your policy or access the cash value you've accumulated, as long as you wait out any imposed maturity period.