Sentences with phrase «available cash value of your policy»

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

As long as the premiums are paid, you can borrow * against the available cash value of the policy.

Not exact matches

Conversion to a cash value policy is available without proof of insurability.

You see, when a participating whole life insurance plan is properly structured to maximize the cash value, the cash value can become available relatively quickly depending upon the amounts deposited and the other details of the policy.

However, this option is typically only available once your life insurance policy's cash value has reached a certain size, which may take five to ten years of paying premiums.

It's simple to borrow against the cash value of a permanent life insurance policy as there are no loan requirements or qualifications aside from the amount of cash value you have available.

There are different types of life insurance policies available, ranging from term life insurance, which is pure death insurance, to traditional dividend paying whole life insurance, which provides cash value growth in the policy.

Using PUAs is an effective method of increasing your available cash value while at the same time boosting the policy's death benefit.

The primary difference between Transamerica's indexed and variable universal life policies is the set of options available for how to invest the policy's cash value.

Policy loans are also available using your cash value as collateral, but keep in mind that loans affect the amount of your 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.

Rather than surrender your life insurance policy for the cash surrender value, there is a market available that allows you to sell your life insurance policy for cash, for potentially greater amounts of money than had you chosen to surrender the policy to the life insurance company.

For instance, the analysis below shows an updated estimate of the economic value of the policy, where $ 4,500 of cash value is available to cover all of the first year premium and part of the second year's as well.

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).

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.

These estimates impact the cost of premiums, the available benefits, and the cash value of the policy.

if premiums aren't paid and there is no cash value available to pay the cost of insurance, the policy lapses (cancels)

* In most whole life policies you can only borrow up to 90 % of the cash value, so actual cash value in example above available for loan would be closer to $ 900.

The net cash values are available to the policy's owner in the form of policy loans and surrender value if the policy is cancelled.

The cash value that is available inside of a life insurance policy can be a great source of supplemental retirement income.

The reason this is available is to allow the cash value of the contract to stay within the company, but change out the insured of the policy when a C - Suite executive moves out of the job and someone else moves into it.

Instead of lapsing for no value or surrendering the policy for its available cash, it can be appraised to determine its potential fair market value and may then be sold in the secondary market subject to certain conditions.»

Only available with Cash Value Life Insurance policies and they are really only effective and useful for the wealthiest of Americans.

Cash value The amount of money that is available on the life insurance policy for loans or withdrawals.

It's simple to borrow against the cash value of a permanent life insurance policy as there are no loan requirements or qualifications aside from the amount of cash value you have available.

Whole life insurance combines a level premium with guaranteed cash values which the policy owner may use to meet a variety of financial goals.3 Whole life insurance policies may also produce excess credits, which may be used to purchase additional paid - up life insurance, potentially increasing the available death benefit.

To remain active, the policy must have sufficient available cash value to pay for the cost of insurance.

Because the loan will reduce the amount of available cash value in the policy, however, it will also reduce the amount of death benefit.

There are also more underlying options that are available in terms of allowing a universal policy holder's cash value to grow.

Cash value will be greater in the later years of a policy than in the early years, since the cash value accumulates over time, but the bottom line is that ready cash can be available should a need arCash value will be greater in the later years of a policy than in the early years, since the cash value accumulates over time, but the bottom line is that ready cash can be available should a need arcash value accumulates over time, but the bottom line is that ready cash can be available should a need arcash can be available should a need arise.

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.

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.

These types of policies are mostly available as term life insurance policies, although there are some available as a whole life policy which has a cash value accumulation feature.

You may also take a loan against your policy up to the amount of available cash value in the policy.

Cash surrender value is the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the polCash surrender value is the accumulated portion of a permanent life insurance policy's cash value that is available to the policyholder upon surrender of the polcash value that is available to the policyholder upon surrender of the policy.

• Permanent coverage, no need to renew it • Guaranteed level premiums; no surprises • Limited pay period available • Cash surrender values • Dividend payouts if participating type of policy

While policy owners are allowed to withdraw funds from the cash value component of a permanent life insurance policy — subject to the amount of the available funds that are in the account — a withdrawal that exceeds the amount of cumulative premiums that have been deposited can be taxed.

The cash values would also be available to fund lifestyle or personally managed investments on a tax free basis in the form of refunds of premiums paid in and policy loans (which would be paid off on death by the death benefit.)

Withdrawals from variable life insurance policies are only restricted by the amount of cash value available.

Whole Life policies are also popular because of their guarantees which are usually available through the premiums and a guaranteed interest rate return on your cash value account.

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.

The primary difference between Transamerica's indexed and variable universal life policies is the set of options available for how to invest the policy's cash value.

Non-Forfeiture - One of the choices available if the policy owner discontinues premium payments on a policy with a cash value.

In addition, part of the premiums paid accumulates as cash value, which is available if the policy is cashed in or terminated.

An alternative to viatication is to borrow against the cash value of a permanent life insurance policy (this option is not available with term life insurance, however).

So - called «non-forfeiture» laws ensure that if a consumer walks away from the policy, that reserve is available in the form of a policy cash value that can be paid if / when the policy is surrendered.

Of the taxable income, the portion that is the policy's internal «profit» (the excess of the available cash surrender value over premiums paid) is taxed as ordinary incomOf the taxable income, the portion that is the policy's internal «profit» (the excess of the available cash surrender value over premiums paid) is taxed as ordinary incomof the available cash surrender value over premiums paid) is taxed as ordinary income.

To tap the policy's cash value, and free up available cash flow, Andrew decides to stop paying the $ 5,000 / year premium on the policy, and take out $ 15,000 / year in the form of a policy loan.

Technically, though, there is a third option to the «keep versus lapse» decision of life insurance: to sell the policy to a third party in a transaction called a «life settlement» to an (institutional) investor who might be willing to pay more than just the policy's cash value (or the $ 0 value that might be available if the coverage just lapses on its own).

Growth of the whole life insurance cash value depends on a variety of factors, including the premium amount and the level of fees charged by the life insurance company, the performance of the investments the insurance company makes, the amount of claims paid and properly blending available policy riders.