Sentences with phrase «accumulating cash value then»

If you are more concerned about accumulating cash value then the indexed universal life policy and certain whole life policies that are designed properly would tend to be your best options.

Not exact matches

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.

At retirement, many people then begin to use the accumulated cash value to supplement retirement income.

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!

If too little is left to invest, then little or no cash value will accumulate in the policy.

At certain point in time, the accumulated cash value may exceed the face amount, then what happens?

If they end up not needing those benefits, then they can use the accumulated cash value for other purposes.

At retirement, many people then begin to use the accumulated cash value to supplement retirement income.

The important difference then becomes the costs associated with traditional whole life as well as the desire to accumulate usable cash value within the policy.

They usually also accumulate cash value which can then be paid out in dividends or applied to your account as a payment against your premium.

If the policy had been in effect for many years, and if the investments went well, then the policy could accumulate a significant amount of cash value.

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.