Sentences with phrase «accrue the cash value of»

When permanent cash value life insurance is used for an executive bonus plan, as opposed to term life insurance, the accruing cash value of the policy can offer an additional incentive to the employee (know the difference between term life vs whole life).

The accrued cash value of a whole life policy has another benefit; you can use the accrued value without affecting the guaranteed payout amount.

In fact, the controller alleged that John Hancock has a practice of avoiding paying death benefits, instead collecting premiums from the accrued cash value of a policy, even when the premium payments stop coming from the insured.

Your premiums will pay for the insurance and accrue the cash value of the policy, which usually takes about two years.

If a financial advantage is your goal, a whole life policy offers options not available in term life, including the ability to withdraw or borrow against the accrued cash value of the policy.

By borrowing against the policy, you can use the accrued cash value of the policy to make the premiums or to help you get past other financial difficulties without losing the policy itself.

Not exact matches

SolarCity's recurring cash flows exceed a net present value of $ 2 billion [2] above and beyond non-recourse debt repayment, all of which will ultimately accrue to the combined company if the acquisition is approved.

This aggregate purchase price was comprised of (i) conversion of indebtedness of the registrant and interest accrued thereupon, the value of which conversion was $ 2,988,031 and (ii) cash payments to the registrant, which totaled $ 37,011,968.

The carrying amounts of the Company's financial assets and liabilities, including cash, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments.

Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of «gross income» in the Act.

Part of the strategy is to work with mutual life insurance companies that allow flexibility in borrowing from the policy and allow the cash value to accrue regardless of outstanding policy loans.

Part of that premium accrues as cash value.

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.

Fifteen years ago, Alex purchased a participating whole life policy for the purpose of accruing cash value, planning for college funding and also securing a permanent death benefit for his family.

«Participating life insurance» is only possible with a cash value life insurance policy as distinguished with other types of life insurance that do not accrue cash value such as convertible term life insurance or most guaranteed universal life insurance policies.

Let's focus on the first 2 types because the latter isn't really for the purpose of accruing much cash value if any.

«Dirty» includes the present value of all future cash flows, including accrued interest, and is most often used in Europe.

By switching to term insurance, we lowered our monthly bills and got a cash payout for the accrued value of the policy — going straight to our credit cards, but helping us get closer to being able to save more money.

This type of policy accrues cash value.

In addition to remaining in effect as long as you pay your monthly premiums and keep any other obligations per your contract with the insurance company, these type of policies also accrue «cash value».

And typically, especially in the earlier years, the death benefit is several times the amount of accrued cash value.

However, this can backfire because if people ease off of paid up addition, this can undermine their strategy of accruing cash value.

All of them come with different advantages but they each offer the death benefit and the life policies all accrue cash value.

The basic idea behind this infinite banking concept ® is that a policy holder can design a whole life policy to accrue cash value more quickly for the purpose of setting up a unique vehicle for personal family financing.

The critical downside of term life insurance, for SBA loans (also applicable to other key man insurance) is that zero cash value accrues within the policy.

Remember that the types of cash value life insurance vary based upon the formula for accruing cash value within the policy but the most common variations are dividend paying whole life insurance or indexed universal life insurance.

Sometimes, this strategy is accomplished by using supplemental term life insurance to boost the amount of death benefit while the cash value is accruing.

Whether the return of cash value is guaranteed, as in a whole life or guaranteed UL policy OR whether based upon the financial markets, as in IUL and Variable UL policies, the idea behind permanent insurance is to accrue a nest egg of usable cash value within a life insurance policy.

2 The adjusted total premium is the initial single premium plus any underwritten increases, less any partial surrenders and any applicable surrender charges in excess of policy gain and any loans and accrued loan interest, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value, The death benefit guarantee will not apply if the sum of any outstanding loans plus accrued loan interest is greater than the policy's cash value.

Keep in mind that loans against the policy will accrue interest and decrease both death benefit and cash value by the amount of the outstanding loan and interest.

In this context, assets include total market value of the fund's investments (priced using the closing price of all the assets on the day the NAV is calculated), cash and cash equivalents, receivables and accrued income.

Here, assets include the total market value of the fund's investments, cash and cash equivalents, receivables and accrued income.

I had a CapitalOne «No Hassles» mileage reward card I stopped using in 2009 and it took me 3 years to use the miles at maximum value (1 % of the cash spent to accrue them).

Step two of the conduit whole life insurance strategy is to locate an acceptable secondary investment asset in your area of interest / expertise and use your accrued cash value for this acquisition.

Funding a split dollar plan is a way to reward a key employee while accruing cash value in a whole life insurance policy that can serve as a ready source of funding for the employer.

As we touched on above, this strategy of borrowing from a properly structured whole life insurance policy allows you to continue to accrue cash value, tax free, regardless of the amount borrowed and at reasonable market rates.

However, this type of policy offers less life time benefits because either no cash value accrual or very limited cash value growth will accrue.

That means if you have enough money in the cash value, you can use that to skip premium payments entirely, letting the accrued interest do the work — but keep in mind that this can typically only be done after the first year of the policy, and only if there's at least enough cash value in the policy to keep the policy inforce for another 60 days.

It accrues no cash value paid out at the end of the term, if you're still living.

While initial premiums are higher than with a typical term policy, it is possible for coverage to continue until death of the insured, and cash value may accrue in the policy on a tax - deferred basis that can be used to help meet financial needs during your life.

Cash value accrues in the policy and it can provide you with a source of potential cash flow in the form of loans or withdrawCash value accrues in the policy and it can provide you with a source of potential cash flow in the form of loans or withdrawcash flow in the form of loans or withdrawals.

Of course, depending upon your financial circumstances, step one can take some time because, just like purchasing real estate and any other assets, there are some start up costs for properly funding your policy and allowing your cash value to accrue.

At the same time, letting the policy lapse may not be the best option either, especially after paying into it with the expectation of accruing a healthy cash value.

Specifically, under a discounted cash flows methodology, the value of a company's stock is determined by discounting to present value the expected returns that accrue to holders of such equity.

For those that are critical of these policies, they are quick to point out term is cheaper and that these policies don't accrue much cash value in the early years.

The amount of the accrued dividend on any coupon valuation date depends in part on the aggregate cash value of distributions that a reference holder would have been entitled to receive in respect of the index constituents prior to the relevant coupon valuation date.

While some travelers love the simplicity of «Cash Back» cards, others value accruing points in a flexible rewards program where they can be redeemed for high value experiences like luxury hotels and expensive flights.

Yes, the American Express JetBlue card accrues JetBlue frequent flier miles, but the value of those miles you are earning — somewhere around 1.5 percent on most of your spending — is less than the 2 percent you would earn on Citi Double Cash.

Some travel rewards cards that accrue points allow you to convert points or miles into cash as well, but the value of travel rewards points are often diluted when used as cash back instead of redeeming them for travel expenses.