Sentences with phrase «available cash value»

Because the loan will reduce the amount of available cash value in the policy, however, it will also reduce the amount of death benefit.
Because the loan will reduce the amount of available cash value in the policy, however, it will also reduce the amount of death benefit.
Whole life policy would allow you to borrow from available cash value for any reason and pay it back.
Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.
You have contractual rights in your policy to be able to take out a policy loan against available cash value with no questions asked.
If you find yourself in a tight spot financially, you can make lower payments, subject to policy limitations and available cash value levels.
To remain active, the policy must have sufficient available cash value to pay for the cost of insurance.
You may also take a loan against your policy up to the amount of available cash value in the policy.
In other words, the policy must still be structured such that its cash value is expected to equal its death benefit face value at age 100 (or if there's a shortfall, the death benefit may be reduced to equal the then - available cash value at that time), and from that point forward the insurance policy would simply continue to earn its cash value return (but would no longer have any death benefit amount at risk).
Yes, upon distributing available cash value in the policy, you will receive a 1099 from Gerber.
Because policy loans do not have to be repaid during your lifetime, the interest is considered to be «accumulating» in the policy until your death, which may cause the remaining available cash value to decrease over time.
Should you encounter any financial difficulties while your child is growing up, it's good to know that you can borrow against the policy's available cash value as long as all premiums are paid (policy loan interest rate is 8 %).
However, an outstanding policy loan will reduce the overall available cash value and if death were to occur with an outstanding policy loan, the loan would be paid back via the death benefit proceeds.
Unlike 401 (k) s and IRAs that penalize you for accessing your money prior to reaching age 59 1/2, a whole life policy would allow you to borrow from available cash value for any reason and pay it back.
1Policy loans and withdrawals will reduce available cash values and death benefits, and may cause the policy to lapse or affect any guarantees against lapse.
After the surrender period ends, you can typically take out a loan against a portion of the available cash value.
Using PUAs is an effective method of increasing your available cash value while at the same time boosting the policy's death benefit.
By contrast, a Term Life policy accumulates no cash, so there's no available cash value to borrow against.
Also, in some cases, some policies will allow the policyholder to access any available cash value income tax free to help cover any financial needs and supplement retirement income.
After the surrender period ends, you can typically take out a loan against a portion of the available cash value.
For those with children, any available cash value that a life insurance policy may have accumulated can be accessed through policy loans and withdrawals to help fund a variety of expenses ranging from day care to supplementing college funding.
Be careful though because sometimes the company will simply use your available cash value and pay the premiums due.
With the Grow - Up ® Plan, your child can choose to keep the policy upon turning age 21 or turn it in for its available cash value.
* Policy loans and withdrawals will reduce the available cash value and death benefit and may cause the policy to lapse, or affect guarantees against lapse.
By contrast, a Term Life policy accumulates no cash, so there's no available cash value to borrow against.
As the policyowner, you can access the available cash value, through loans and / or surrenders, depending on your policy's terms, at any time and for any purpose.
A NOTE ON MEC (Modified Endowment Contract) A single premium life insurance policy is always a MEC, which simply means that your life insurance policy will be treated as a qualified plan such as, IRA, 401K, SEP or 403 (b); and will incur the same penalties if you withdraw any available cash value.
A policy owner who takes a loan against the available cash value may choose to pay back the loan with interest, or to have the amount owed deducted from the death benefit at the time of payout, or to surrender the policy and have the amount owed deducted from the available cash value.
Policy owners can access the available cash value of their whole life insurance policy, such as the Gerber Life Whole Life Plan, at virtually any time.
So if you ever have an unexpected expense or financial emergency, you could borrow against the available cash value of your policy.
If a client forgets to make a premium payment, the Familylife Automatic Premium Loan feature will pay their premium from the available cash value provided it is sufficient to cover that premium amount.
However, current laws require those involved in the spend - down process to usually spend most, if not all, of the available cash value in a traditional, unprotected life insurance policy.
For example, a policy owner could turn in the policy for its available cash value, or borrow against the cash value and still keep the policy in force, or temporarily use the cash value to pay the policy's monthly premiums.
The policy provides a flexible premium based on your available cash value.
This means, for example, that if you suddenly need ready cash or are unable to pay for your insurance premium, you could borrow against the policy's available cash value.
As an adult, your child will have the option to turn in the policy and receive the available cash value.
# 4: You could take the available cash value and use it to buy a new policy fully paid up to age 100 or 121.
Or, your child as an adult could turn in the policy for the available cash value.
You can also surrender the policy and receive the available cash value.
As long as the premiums are paid, you can borrow * against the available cash value of the policy.
Should you ever want to turn in the policy, you'll receive the available cash value.
When your child turns age 21, your child will have two options: Keep the policy and have coverage for life, or turn in the policy and get the available cash value in return.
If you're temporarily unable to pay your monthly premiums, Gerber Life may be able to pay them for you by using your policy's available cash value.
Or, you might decide to turn in the policy for the available cash value.
The policy owner controls all functions of the policy, can borrow any available cash value from the policy, can reassign ownership of the policy and can terminate the policy.
In other words, you can borrow the available cash value, but not more.
The good news is that by virtue of the structure, the policyowner can never be on the hook for a loan that's greater than the available cash value.
Navy Mutual Flagship Whole Life policyholders may elect to borrow up to 75 % of the available cash value at any time at a variable loan interest rate.
Eventually a large loan will consume all the available cash value, and the life insurance policy will lapse.
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