Sentences with phrase «accumulate cash values on»

Permanent life insurance policies provide a death benefit as well as other unique features such as lifelong protection and the ability to accumulate cash values on a tax - deferred basis, similar to assets in most retirement - savings plans.

In later life stages, permanent life insurance may offer, depending on the type of policy, the opportunity to accumulate cash value on a tax - deferred accrual basis, money that can be used for diverse needs.

Another feature of permanent insurance is that it accumulates a cash value on a tax - deferred basis.

Next time around, you may want a permanent policy so you can accumulate cash value on a tax - deferred basis or just for the hassle - free life coverage at a guaranteed premium amount.

Whole life insurance accumulates a cash value on a pre-tax basis.

Permanent insurance provides lifelong protection, and the ability to accumulate cash value on a tax - deferred basis.

Your premium payments on a permanent life insurance policy may accumulate cash value on a tax - deferred basis.

Whole life policies do accumulate a cash value on a tax - deferred basis, however, the net rate of return is low when compared to a balanced investment portfolio and the insurance cost, expenses and method of determining the dividend scale / interest rate are not disclosed.

In later life stages, permanent life insurance may offer, depending on the type of policy, the opportunity to accumulate cash value on a tax - deferred accrual basis, money that can be used for diverse needs.

Another advantage to this option, you will accumulate cash value on your tax - deferred basis.

You can lock in the premium for life for a much lower premium than a whole life policy and still accumulate cash value on tax favored basis.

These policies also allow the policy holder to accumulate cash value on a tax - deferred basis over time.

Participating life insurance is a permanent coverage which allows policy owners to earn dividends and accumulate cash value on a tax - preferred basis.

Also, permanent life insurance allows you to accumulate cash value on a tax - deferred basis.

However many are considering buying term life insurance at a lower rate and invest the difference on high - growth products like stocks and mutual funds where the returns are much higher than what you get as accumulated cash value on your whole life insurance.

Universal life insurance on the other hand (often called a UL policy for short) is a type of permanent insurance that provides lifelong protection with an ability to accumulate a cash value on a tax - deferred basis.

The ability to accumulate this cash value on a tax - deferred basis and borrow from it without any income tax consequences has made whole life insurance a popular option for many.

You might be able to access the accumulated cash value on your life insurance policy.

Part of your permanent life insurance premium will accumulates cash value on a tax - deferred basis.

Not exact matches

This clause provides that if the policyholder fails to pay the premiums on a life insurance policy, the insurance company may automatically use the accumulated cash value to pay the premiums.

The cash value of a universal life insurance policy accumulates based on the amount of premium paid, monthly deductions for policy costs and an interest rate that is declared by the insurance company.

If $ 300,000 has been contributed on behalf of a teacher (including accumulated returns), then the cash value of an annuity provided to this teacher should also be $ 300,000.

In the world of annuities, there are a few different types of contracts which vary based upon how the cash value is accumulated on a tax deferred basi...

And it is a particularly great asset to have if you design the policy properly, with the focus on accumulating cash value.

Rather, the policy acts as a forced savings plan that accumulates money in a tax deferred account that you can THEN use to invest with, as you purchase other income producing assets, at the same time as earning interest and dividends on the cash value in your policy!

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.

Buying a permanent policy on your child while they're young will allow the cash value to accumulate into a substantial amount.

The cash value account earns a modest rate of interest, with taxes deferred on the accumulated earnings.

On top of the death benefit amount, this option allows any amount left in the policy fund to accumulate cash value and the total to be paid tax - free to the beneficiary.

Whole life insurance is much more expensive than term life insurance — often 4 times as expensive for the same death benefit — because the premiums are going toward: the accumulating cash value, fees and charges (more on this later), and the death benefit (i.e., the life insurance).

Over time, the cash value of the policy will accumulate on a tax - deferred basis.

The cash value accumulates on a tax - deferred basis in most cases, but this is based on current tax law, which could change.

With permanent life insurance, you can access accumulated cash value to cover retirement expenses without generally having to pay any tax on the distribution, although it does reduce the cash value and death benefit amounts.

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.

In addition to the life insurance coverage that is provided with a permanent plan, this type of policy will also include a cash value component where cash can accumulate on a tax deferred basis over time.

Do you still need to be paying the premiums on the policies even though you have accumulated enough cash value to pay for themselves?

In the case of permanent life insurance policies, cash values accumulate on an income tax - deferred basis.

Depending on your policy's potential cash value, it may be used to skip a premium payment, or be left alone with the potential to accumulate value over time.

Loans can be drawn against the accumulated cash value to make premium payments in the short term or supplement retirement income later on.

On the other hand, whole life insurance accumulates a cash value that the owner can access, so it can be counted as an asset.

And, should an emergency arise and you are short on cash, you may be able to skip a scheduled payment and let the accumulated cash value cover the policy's expenses.

Permanent life insurance provides death benefit protection, creates a living legacy that will accumulate cash value with each passing year, and may help your child or grandchild get a head start on his or her financial future.

Cash values, which accumulate on a tax - deferred basis just like assets in most retirement and tuition savings plans, can be used in the future for any purpose you wish.

And, should an emergency arise and you are short on cash, you may be able to skip a scheduled payment and let the accumulated cash value cover the policy's expenses.

Permanent coverage will also include a cash value build - up where the cash can accumulate on a tax - deferred basis.

Cash values, which accumulate on a tax - deferred basis just like assets in most retirement and tuition savings plans, can be used in the future for any purpose you wish.

If your policy is accumulating cash value, the cash surrender values grow on a tax - deferred basis.

The reason is that they not only pay out on death benefits, but they also have a cash value accumulation feature which accumulates over the life span of the policy.

Unlike term life insurance, which does not accumulate cash value, universal or whole life insurance has a cash component, especially later on.

For example, fixed index universal life insurance is a universal life insurance policy that allows for an opportunity to accumulate cash value based on positive changes in an external market index or a fixed interest allocation.