Sentences with phrase «against a life insurance policy because»

Policyholders should thus exercise caution while taking up a loan against a life insurance policy because the policy is supposed to protect one's loved ones in the event of their death.

Not exact matches

Well, because life insurance companies want to protect themselves against the risk of terminally ill buying policies.

The main purpose of the legal reserve is to provide lifetime protection, but because more money is collected in premiums in the early years of a policy than is needed to cover the mortality charge, level - premium policies develop a cash value, which the policyholder can borrow against, or can surrender the policy for its cash value if the policyholder no longer wishes to continue the life insurance policy.

Permanent life insurance policies are excellent emergency resources because they're accessible, you can borrow against them without having to qualify for a loan, and you can pay a policy loan back on your own schedule.

These policies have made life insurance much more relevant for a large segment of the marketplace, because these riders can provide significant protection against the staggering costs of long - term care without draining the policy holder's wallet.

One of the virtues of cash value life insurance is that insurance companies are willing to make loans against the policy at relatively favorable interest rates, because the insurance company knows that it can always foreclose on the policy (i.e., force its surrender) as collateral to repay the loan.

This is primarily because it provides an important security against disability caused by accidents, which your life insurance policy will not cover.

However, because term life insurance doesn't have a cash value, that does mean you can't do some fun things that owners of permanent life insurance policies can do, like borrow against your life insurance policy.

I often compare life insurance to real estate when talking about loans because taking a policy loan is similar to taking a line of credit against real estate EXCEPT that the loan process requires no approval.

Whole life insurance can cost double (or more) than guaranteed universal life insurance because the policies are building «cash value» which can be later borrowed against, or used to fund an investment.

And, if you live in an area prone to flooding or earthquakes, you need to get protection against those events specifically because they do not come standard in renters insurance policies.

This Seattle renters insurance policy is specifically designed for those that are in leasing situations because it can protect against damages to contents that renters in Washington own and can also provide coverage for injuries caused to people that are in the apartment but who don't live there.