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

«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.»

Not exact matches

You can always borrow against the cash value of the policy, and you won't have to pay any taxes on that accumulation unless you choose to redeem it.

When you borrow against your policy (use your cash value as collateral), you are still receiving dividends on your full cash value, AND you get the use of the cash on loan to invest in something else.

It's important to note that when you borrow against the cash value of your policy, interest will be charged on the loan, but in most cases the interest rate tends to be very low.

It's important to note that when you borrow against the cash value of your policy, interest will be charged on the loan, but in most cases the interest rate tends to be very low.

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.»

Loans2 or withdrawals can be taken against the cash value of a permanent life insurance policy to help with expenses, such as college tuition or the down payment on a home.

The policy builds cash value that can be borrowed against and there is a terminal illness rider on all polices with face amounts of $ 25,000 or greater.

While a permanent policy's cash value can be borrowed against to help with expenses such as retirement or college tuitions, the loans can reduce the death benefit and cash value of the policy and the loan interest may be charged on the amount borrowed.

Interest incurred on indebtedness has historically been deductible, (although the deduction of «personal» interest was largely eliminated in 1986), and in the 1950s a type of «leveraged insurance» transaction began being marketed that permitted an insurance owner to in effect deduct the cost of paying for insurance by (1) paying large premiums to create cash values, (2) «borrowing» against the cash value to in effect strip out the large premiums, and (3) paying deductible «interest» back to the insurer, which was in turn credited to the policy's cash value as tax - deferred earnings on the policy that could fund the insurer's legitimate charges against policy value for cost of insurance, etc..

These policies can now offer protection against chronic illness, critical illness and nursing home care on top of the traditional death benefit and / or cash value.

Additionally, you may elect to purchase the policy so that a level death benefit is purchased and the cash value accumulates «on top of» or in addition to the death benefit or you may choose to purchase a level death benefit in which the cash value acts as a reserve against the death benefit (thus lowering the actual cost you pay for the death benefit over time).

Loans or withdrawals can be taken against the cash value of a whole life insurance policy to help with expenses, such as college tuition or the down payment on a home.

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).

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.

Perhaps you will be able to borrow more from a personal loan since the insurance loan amount will be decided by the cash value of your plan, but then your whole credit score will be put on the line, something that is not touched while taking a loan against your insurance policy.

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.

When you borrow against your policy (use your cash value as collateral), you are still receiving dividends on your full cash value, AND you get the use of the cash on loan to invest in something else.

Depending on the type of policy, an insured can also withdraw or borrow against the insurance policy's cash value to use for education expenses.

Depending on the terms of the life insurance policy, you might be able to borrow against the cash surrender value of the policy.

Depending on the terms of the whole life policy, a policyholder can borrow against the cash surrender value of the policy.

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).

For example, you can borrow against the accrued cash value on most permanent life insurance policies, and some types of policy will even allow you to participate in deciding where and how your premiums will be invested, which can yield a higher cash value.