Sentences with phrase «because life insurance policy dividends»

This is because life insurance policy dividends are considered to be a return of excess premium.

Not exact matches

A spokesman for Sun Life Assurance, one of Britain's large institutional investors, says no insurance company would allow dividends to slip, because customers would take their policies elsewhere.

Cash value life insurance coverage usually guarantees a rate of return around 4 % with today's interest rates and this return should be viewed as a baseline because the non-guaranteed portion of the policy includes dividends that are tax free and reinvested.

This interest is actually a dividend from the life insurance company's yearly profits, and the growth rate is generally low compared to other investments because life insurance companies have additional expenses (like policy administration expenses and underwriting costs) that a pure asset manager does not.

The policy has tax advantages because the yearly dividend payments are generally considered return of premium and life insurance death benefits are tax free.

In addition, because SBLI is a mutual life insurance company, this policy is eligible for dividends — which can be added to the cash component of the policy, or in turn used for purchasing additional amounts of life insurance protection.

Personally, I'd rather keep the life insurance, use the cash values to supplement my investments and / or use the cash value to pay my income in the years the stock market goes down (like 2001, 2008, etc) so that I don't end up worse off than when I began because at the end of the day that account can't lose its value, I can't be sued for the value of it, I don't need to report it on my son's FAFSA form for college, AND if I pull money out of it for my son's school, the dividend still pays the same amount as if I hadn't drawn the money out in the first place (fun fact: that last point isn't something that a northwestern policy does, but new york life and massmutual's contracts do).

However, for particular products, such as dividend paying whole life insurance, a mutual company will often be the better choice primarily because the of annual dividends returned to policy holders.

Permanent life insurance has cash value because it builds savings and can even generate dividends (for participating life insurance policies).

In our pool of options to identify the best company offering the ideal whole life insurance policy for infinite banking, a key consideration is a strong dividend payment history because this contributes directly to your ability to accumulate expedited cash value within the policy.

Because this tax favored environment exclusive to participating whole life insurance policies is a key advantage, you understand why we tend to prefer mutual companies in our top 10 best dividend paying whole life insurance companies list.

This type of dividend paying coverage is also referred to as participating whole life insurance because the policy owner is participating in the insurance company's profits.

The reason that a quote for whole life insurance is not so simple is because oftentimes it is best for clients to over fund a policy in the early years to increase the dividend payment, for instance.

Cash value life insurance coverage usually guarantees a rate of return around 4 % with today's interest rates and this return should be viewed as a baseline because the non-guaranteed portion of the policy includes dividends that are tax free and reinvested.

Consult your insurance advisor before buying a whole life policy from a particular insurance company because dividends are not always guaranteed.

That's because life insurance dividends are a return of premiums that you previously paid for the life insurance policy and the life insurance dividends reduce the cost of your life insurance policy and are not taxable on your tax return until they exceed the net premiums you paid for the life insurance policy.