Sentences with phrase «against the death benefit if»

It is important to note, though, that any unrepaid loan or withdrawal will be charged against the death benefit if the insured dies before the funds have been repaid.

A simple case: Suppose the combination product is a life insurance policy that provides a loan against the death benefit if you enter a nursing home or have a serious illness.

It is important to note, however, that any unpaid cash value balance will be charged against the death benefit if the insured passes away before the balance is repaid.

Not exact matches

Thanks to «the slayer rule», when you're «south of heaven» and your life insurance beneficiary is the one who put you there, most states show no mercy if there's a preponderance of evidence against the person trying to claim the death benefit.

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.

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.

If a policy of insurance has been or shall be effected by any person on his own life or upon the life of another person, the policyowner shall be entitled to any accelerated payments of the death benefit or accelerated payment of a special surrender value permitted under such policy as against the creditors, personal representatives, trustees in bankruptcy and receivers in state and federal courts of the policyowner.

If you die within the term and there is a loan against the policy, your beneficiaries will receive the death benefit minus the loan plus interest.

This means a death benefit will be paid out even if you commit suicide, and that material misrepresentation on the application can not be used against you in a claim.

Although we would caution against this strategy if your goal is to build your cash value and death benefit over the long term, it is a nice feature of whole life insurance as an investment.

If there are any loans against the life policy, then these amounts will reduce the face value of the death benefit when the insured passes away.

If you borrow against an existing policy to pay premiums on a new policy, death benefits payable under your existing policy will be reduced by the amount of any unpaid loan, including unpaid interest.

It is possible to take out a loan against a policy's cash value, however, if the loan remains outstanding this will decrease the death benefit.

If, however, a policyholder does remove cash from the policy — regardless of whether it is through a withdrawal or a loan — any unpaid balance will be charged against the death benefit proceeds.

In the unlikely event that a child passes away, the death benefit can be used for final expenses, or if the child requires some costly medical treatment, the cash value can always be withdrawn or borrowed against tax - free to help pay for the medical expenses.

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.»

It should be noted, though, that if you borrow against your policy, it must be repaid in order for your death benefit to remain unaffected.

Thanks to «the slayer rule», when you're «south of heaven» and your life insurance beneficiary is the one who put you there, most states show no mercy if there's a preponderance of evidence against the person trying to claim the death benefit.

In addition to higher premiums, insurance companies that issue guaranteed life policies protect themselves against risk in two additional ways: (1) by offering relatively low payouts, and (2) by typically not providing a death benefit during the first two years after issuing the policy (if the policyholder dies during this time, the company issues a refund of premiums instead).

While the funds that are borrowed from a permanent life insurance policy do not typically have to be repaid, if they are not, the shortfall — plus interest — will be charged against the amount of the death benefit that is ultimately paid out to the policy's beneficiary.

Of course, taking money against the policy will reduce the death benefit but this isn't a problem if your needs have adjusted, your policy accrues interest greater than your loan, or you have the ability to repay the loan.

If the insured policy owner passes away while there is outstanding debt leveraged against the whole life policy, then the difference will be subtracted from any future death benefit payments.

Part 2: Primerica's argue against Whole Life because the Insured's beneficiaries do not receive BOTH the death benefit and the Cash Value... as if this is bad business practice.

You have to borrow against your own money and double your interest rate that you get in return, they have up to 6 months to give you a loan again which is your money in the first place, when they pay out the benefit of the insurance they only get the death benefit or the cash value but if there's a loan taken out of the cash value that gets subtracted as well as the interest rate on the loan.

You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced.

If you have borrowed against the cash value accumulation while still alive, any amount that has not been re-paid, along with interest, will be deducted from the death benefits when you die.

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.

If you die in the first 2 years of the policy and the carrier has valid grounds to contest the policy's validity, the company may choose to forego paying the death benefit and make a claim against the insured for some type of fraud.

Although we would caution against this strategy if your goal is to build your cash value and death benefit over the long term, it is a nice feature of whole life insurance as an investment.

However, it is important to note that if there is an unpaid balance in the cash component at the time of the insured's passing, then the amount of this balance will be charged against the amount of the death benefit that is paid out to the named beneficiary.

If you die within the term and there is a loan against the policy, your beneficiaries will receive the death benefit minus the loan plus interest.

However, if you pass away while a loan is taken out against your policy, the remaining balance that you owe will be deducted from the death benefit your beneficiary receives.

The cons whole life insurance policyholders face is the decrease in the death benefit or face value in slow economic times or if a loan is made against it.

It is, however, important to note that if there is an unpaid balance at the time of the insured's death, the amount that is not repaid will be charged against the death benefit proceeds that are paid out to the beneficiary (or beneficiaries).

An accelerated death benefit rider, also known as the living benefit option, allows a policyholder to receive a cash advance against a policy's death benefit if he / she is diagnosed with an incapacitating health condition, the onset of a terminal illness, or the need for long - term or hospice care.

In fact, if you do not repay principal even till maturity / death, LIC will automatically square off the outstanding loan amount against maturity / death benefit and pay the balance to you / your nominee.

Unlike term policies, the death benefit doesn't expire at a certain age and whole policies build cash value that can be borrowed against or passed on to your heirs tax - free — but only if you always pay your premium.

I know insurance companies would argue against this, but if you've had a policy in place for several years and it lapses because you miss a payment, do you think they have a strong interest in reinstating it, or possibly just calling all of the payments made as profit with no further need to worry about paying a death benefit?

This means that if you borrow against it and die while the loan is outstanding, the death benefit is reduced by the amount of the outstanding loan.

if you borrow against it and die while the loan is outstanding, the death benefit is reduced by the amount of the outstanding loan

Keep in mind that cash value isn't added on to the death benefit if you die and if you borrow against it, it is deducted from the death benefit if it hasn't been paid back.