Not exact matches
Allowing the
cash value to continue to
accumulate until your passing, and bequeathing it to one or more beneficiaries if you do not need it for retirement expenses.
For both universal life and whole life policies,
cash value accumulates in a tax deferred environment, which means that no taxes on gain are realized
until cash is withdrawn (above your basis) from the policy.
This type of insurance
accumulates a
cash value up
until the date of its maturation.
Permanent life insurance stays in effect
until the policyholder dies and can
accumulate cash value.
The other provides permanent coverage
until you die (this can now go up to age 120 + on newer policies; older policies may or may not have extended maturity dates / maximum ages) and often
accumulates a
cash value over time.
With whole life insurance, you pay level premiums
until you turn a certain age, after which you don't have to pay anymore: you'll remain covered or you can withdraw the
accumulated cash value without paying a surrender fee.
With whole life insurance, you pay level premiums
until you turn a certain age, after which you don't have to pay anymore: you'll remain covered or you can withdraw the
accumulated cash value without paying a surrender fee.
Allowing the
cash value to continue to
accumulate until your passing, and bequeathing it to one or more beneficiaries if you do not need it for retirement expenses.
Permanent life insurance stays in effect
until the policyholder dies and can
accumulate cash value.
Some policyholders find this appealing because they can access the
cash value while they're still alive, although it generally
accumulates interest and reduces the death benefit
until you pay it back.
This will ensure an owner can stop making payments after the paid up period ends, and the policy will remain in force, and continue to
accumulate additional
cash value,
until the insured dies.
Universal life insurance (also called non-guaranteed universal life insurance) lasts
until you die and
accumulates cash value, but the
cash value is tied to investment performance.
In some cases, the replacement policy is one that has more flexibility (e.g., going from a whole life policy to a universal life policy), or just costs less to maintain (e.g., a death - benefit - only universal life policy that doesn't
accumulate cash value, to replace an existing
cash value accumulation policy, so the new policy can simply be held
until death to obtain the tax - free death benefit).
If you have a permanent life insurance policy that has
accumulated cash value, the insurance company drains your
cash value to pay your premiums
until it runs out after which the policy lapses.
For both universal life and whole life policies,
cash value accumulates in a tax deferred environment, which means that no taxes on gain are realized
until cash is withdrawn (above your basis) from the policy.
The other provides permanent coverage
until you die (this can now go up to age 120 + on newer policies; older policies may or may not have extended maturity dates / maximum ages) and often
accumulates a
cash value over time.
You may be able to quit paying premiums and let the
accumulated cash value pay them
until you're on your feet again.
As a final expense insurance, the premiums will remain level for the duration of the policy, the
cash value will
accumulate over time, and the policy will remain in place
until needed as long as the premiums are paid.
The other thing they don't talk about is the fact that if you do happen to borrow from the
cash value (which doesn't
accumulate very quickly), you either have to pay it back or the loan plus interest will be deducted from your death benefit if you keep the policy
until then.
Accumulated cash value in a life insurance policy (including loans) is protected from creditors
until it is removed.