Sentences with phrase «borrowed against the death benefit»

A policy holder who choose to borrow against the death benefit must be extremely careful.

Because monies borrowed from a VUL policy that is maintained through the insured's life are technically borrowed against the death benefit, they work out tax free.

Not exact matches

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.

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

These policies not only provide a death benefit, but they also accumulate cash value over the course of the policy, which you can borrow against as you age.

Just like with other types of permanent life insurance policies, cash can be withdrawn or borrowed from the policy, however, an unpaid balance will be charged against the death benefit should the insured die prior to the money being repaid.

You can also borrow the funds or take a loan out against the cash accumulation portion, although this canreduce the amount of death benefits payable from the policy.

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.

• Coverage is for life, eliminating the need to renew the policy • Provides death benefits • Cash value accumulation feature, which builds up over the life of the policy • Allows you to borrow against the policy • Allows you to surrender the policy

This cash value can be borrowed against for emergency expenses or to cover premiums, but is not part of the death benefit.

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can be used for final expenses, or if the child requires some costly medical treatment, the cash value can always be withdrawn or borrowed against tax - free to help pay for the medical expenses.

Not only are the death benefits important for surviving family members, but many plans enable policyholders to borrow against it for other monetary needs such as college funding and retirement.

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.

You can also borrow the funds or take a loan out against the cash accumulation portion, although this canreduce the amount of death benefits payable from the policy.

Any cash value that may accumulate in your policy can be withdrawn or borrowed against and used for any purpose (important note: any outstanding loans or partial withdrawals that aren't paid back will reduce your policy's death benefit)

Your beneficiary is still entitled to the death benefit when you die, but there's also a cash value component you can borrow against or partially cash out after a period of time.

The cash value grows at a guaranteed rate annually and can be borrowed against to pay for certain things (such as an emergency hospital bill), but is not added to the death benefit.

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.

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.

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.

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.

Whatever gains are earned can be used in a few different ways: to increase the death benefit, to borrow against for some later use or to keep the policy in effect so that you can stop paying monthly premiums.

Keep in mind borrowing against the policy will reduce the death benefits and is subject to interest.)

You can borrow against the cash value, but unpaid policy loans and interest will be subtracted from your death benefit.

Yes you can borrow against a UL policy, but you'll often need to repay a hefty interest rate, risk losing the policy, or have a reduced death benefit.

Unlike a term life insurance policy where the benefit is only received upon death or terminal illness, Flagship Whole Life offers tax - deferred, cash - value growth that you can borrow against or cash out.

Value - accumulating whole life or universal insurance is often offered as death benefit protection with a cash value component that you can borrow against or eventually cash in by surrendering the policy.

And the death benefit will never decrease (provided that you don't borrow against it).

Just like with other types of permanent life insurance policies, cash can be withdrawn or borrowed from the policy, however, an unpaid balance will be charged against the death benefit should the insured die prior to the money being repaid.

Since a senior life insurance policy is a form of whole life insurance, you'll get many of the same benefits of a whole life policy: the policy lasts your entire life and builds cash value tax - free, you can borrow against that cash value for any reason and the death benefit is paid out tax - free to your beneficiaries.

Whole life insurance policies can also benefit retirees since they provide a fixed premium, allow the insured to borrow against the accrued cash value, and provide a guaranteed death benefit to the insured's beneficiary.

Borrowing against a whole life insurance policy means the amount of the death benefit and cash surrender value are reduced.

Although these policies can offer some cash accumulation over the life of the policy, borrowing against this cash, as discussed more below, could reduce or even eliminate the death benefit, cause the policy to lapse, or both.

Withdraw Money or Borrow Against It When you pay your premium, a portion of each payment goes toward the death benefit, but a portion also goes to building up the policy's savings component (also known as the «cash value»).

This savings component can increase the death benefit or you can borrow against it in the future.

It is also important to understand that the policy loan is not taken out of your death benefit, but borrowed against it, and the insurance company is using your policy as collateral for the loan.

Once the money invested increases the amount of the death benefit, the tax - free cash value can then be borrowed against.

The policy owner can borrow against this money or even redeem his or her policy for it, effectively forgoing the death benefit.

Generally, when you borrow against your life insurance policy it will reduceyour cash surrender value as well as the current death benefit.

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.

This savings feature can be used to increase the policy's death benefit or you can borrow against it while you're still alive.

So, you want to put your family at risk by underinsuring so that you can borrow against the policy and possibly make the death benefit even smaller or nothing at all?

Borrowing against or withdrawing the cash value of a policy will reduce the death benefit and could put the policy at risk of lapsing.

It is quite easy to borrow against accumulated cash value, so great care must be taken to ensure that the face value (death benefit) is not so severely depleted that it defeats the purpose of having insurance altogether.

Insurance Products Life Insurance Cash Value: A Practical Discussion Borrowing against or withdrawing the cash value of a policy will reduce the death benefit and could put the policy at risk of lapsing.

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.