Sentences with phrase «against the cash value of the policy if»

The policyholder receives dividends from the insurance company, and he or she can borrow against the cash value of the policy if the funds are needed.

Not exact matches

A surrender charge is a hold back amount that an insurer charges against the cash values of a life insurance policy for the first 8 to 10 years, if funds are withdrawn early.

Keep in mind that if you've borrowed against the cash value of your policy and pass away, the loan will be deducted from the policy's death benefit.

A policy's cash value is essentially the amount of money you would receive if you surrendered the policy to the insurer, and this amount can be borrowed against or used to pay premiums.

You can also terminate the policy (or «surrender» it) if you want to, and get part of the accumulated funds, or you can sometimes borrow money against your policy's cash value.

If you pass away after and have borrowed against the cash value of your policy, the amount borrowed will be deducted from the death benefit.

One of the advantages of a whole life policy is that it accumulates cash value over time, thus creating an amount that a person can borrow against if needed.

Whole life policies offer living benefits, including tax - free dividends that may accrue (referred to as the policy's cash value); you may even be able to borrow money against the value of a whole life policy if there comes a time that you decide you need to do so.

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.

It is important to note, however, that even though a withdrawal or a loan is not required to be paid back, if there is an unpaid balance in the cash - value component of the policy at the time of the insured's death, then the amount of that balance will be charged against the death benefit that is paid out to the policy's beneficiary.

Surrender Charge Typically applicable to adjustable life, indexed universal life, and variable universal policies, a generally declining schedule of charges against the cash value may be imposed on the policy for a certain number of years from policy inception if the policy is surrendered, the death benefit is reduced, or in some instances, the surrender charge is taken into account in the monthly calculation to determine if the policy is still in force.»

So if you ever have an unexpected expense or financial emergency, you could borrow against the available cash value of your policy.

If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for nonpayment of premium.

These policies often offer the option to take out loans against the accumulated cash value of your policy, which can offer an easy short - term influx of cash if you need it in exchange for a lower - than - average interest rate.

Just keep in mind that if you borrow against the cash value of your whole life insurance policy, you should consider repaying it as soon as possible.

* You won't be able to get loans against term life policies * No cash value would be generated * If you'd need to renew this policy at the end of the term the premium may not remain the same and might well be beyond your reach.

A policy's cash value is essentially the amount of money you would receive if you surrendered the policy to the insurer, and this amount can be borrowed against or used to pay premiums.

Your child will then have the choice of keeping the policy, taking a loan against the cash value if needed, or requesting a payout.

While not to take the place of a savings account, some permanent insurance products have a cash value component that accumulates interest which can be used, via surrendering the policy or borrowing against it, for future expenses such as medical bills; however, the value grows more slowly than a typical investment plan and if you don't repay the policy loans with interest, your death benefit will be reduced.

«On the other hand, if the policy performed well according to expectations, you as the policyholder could be able to start taking loans against the cash value of the policy on a tax - free basis.»

These plans also have a cash value feature through which funds may be borrowed against or withdrawn if the policy holder is in need of cash.

The fact that the lapse of a life insurance policy with a loan can trigger tax consequences even if there is no (net) cash value remaining is often a surprise for policyowners, and has even created a number of Tax Court cases against the IRS over the years.

Notably, depleting the cash value with a withdrawal may mean the policy will still ultimately need another contribution (i.e., more premiums) to sustain in the long run; nonetheless, if the cash value is in a downward spiral towards lapse anyway, a withdrawal to repay the loan will help extend the life of the policy, given that the crediting rate of the cash value is always lower than the interest rate of the loan compounding against it (which for newer policies might be a 0.5 % to 1 % spread, but on older policies can be a 2 % spread or more).

If you borrow against the cash value of your life insurance policy through a loan, then you will not have to pay income tax on the money.

If you take out a loan against the cash value of your insurance policy, the amount of the loan is not taxable, unless the policy is a modified endowment contract.

The policy's cash value is the amount of money you would receive if you surrendered the policy and it can be borrowed against or withdrawn.

The cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, but it can also be borrowed against by the child once it's large enough.

The profits you've earned against your investment will be taxed if you need to use the cash value of your policy before you die.

The cash value of an insurance policy builds over time, so there might not be sufficient cash value available to borrow against if you want to take out a loan in the first years of the plan.

Higher of Guaranteed surrender value or Special surrender value will be paid to you as Cash Surrender Value, after deduction of any outstanding amount on the policy (Policy Loan or any amount payable against your policy) and TDS * (if applicavalue or Special surrender value will be paid to you as Cash Surrender Value, after deduction of any outstanding amount on the policy (Policy Loan or any amount payable against your policy) and TDS * (if applicavalue will be paid to you as Cash Surrender Value, after deduction of any outstanding amount on the policy (Policy Loan or any amount payable against your policy) and TDS * (if applicaValue, after deduction of any outstanding amount on the policy (Policy Loan or any amount payable against your policy) and TDS * (if applicpolicy (Policy Loan or any amount payable against your policy) and TDS * (if applicPolicy Loan or any amount payable against your policy) and TDS * (if applicpolicy) and TDS * (if applicable).

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.

Most ordinary life policies are issued with an automatic premium loan provision that authorizes the company to automatically pay the premium by borrowing against the cash value if the premium remains unpaid at the end of the thirty - one - day grace period.

You can also terminate the policy («surrender») if you want, and get part of the accumulated funds, or you can sometimes borrow money against your policy's cash value.