Sentences with phrase «by borrowing against the cash value»

The most important feature of a permanent life policy is that you can take a policy loan by borrowing against your cash value.

If your circumstances change and you are no longer able to pay your premiums, your only options are to depreciate the policy by borrowing against the cash value or to give up the policy altogether.

Most ordinary life policies are issued with an automatic premium loan provision that authorizes the company to automatically pay the premium by borrowing against the cash value if the premium remains unpaid at the end of the thirty - one - day grace period.

Not exact matches

While term life insurance doesn't accrue a cash value over time, meaning you can't borrow against it, a term policy has a low cost by comparison and is still customizable to an individual's situation.

The cash value can also be borrowed against as a loan and used for various expenses by the policyholder.

If you own a home, and you've built up equity in it by paying off some of your mortgage, you may consider taking out a home equity loan for your business, borrowing against the inherent cash value of your house without the need for a third - party lender in the picture.

By contrast, a Term Life policy accumulates no cash, so there's no available cash value to borrow against.

The cash value earned from a permanent * life policy (such as whole life, universal and variable life) can be withdrawn or borrowed against, providing living benefits that can used by your child as he or she gets older for many things such as:

Another distinct benefit offered by the cash value accumulation portion is that you can also borrow against it.

You can borrow against your cash value by taking out a life insurance loan.

By contrast, a Term Life policy accumulates no cash, so there's no available cash value to borrow against.

Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against.

This cash value account provides an additional layer of financial flexibility by allowing you to borrow against that cash value.

The cash value earned from a permanent * life policy (such as whole life, universal and variable life) can be withdrawn or borrowed against, providing living benefits that can used by your child as he or she gets older for many things such as:

Any accumulated cash value in your policy may be borrowed against by way of a policy loan and used to provide living benefits.

If you own a home, and you've built up equity in it by paying off some of your mortgage, you may consider taking out a home equity loan for your business, borrowing against the inherent cash value of your house without the need for a third - party lender in the picture.

Though it will pay out a stated amount upon the insured's passing, because of its cash value, it can be withdrawn or borrowed against by the policyholder.

The more time goes by the more cash value your policy accumulates and you will be able to «borrow» funds against the policy.

If you need immediate cash, you can borrow against your policy's cash value by taking a policy loan.

Interest incurred on indebtedness has historically been deductible, (although the deduction of «personal» interest was largely eliminated in 1986), and in the 1950s a type of «leveraged insurance» transaction began being marketed that permitted an insurance owner to in effect deduct the cost of paying for insurance by (1) paying large premiums to create cash values, (2) «borrowing» against the cash value to in effect strip out the large premiums, and (3) paying deductible «interest» back to the insurer, which was in turn credited to the policy's cash value as tax - deferred earnings on the policy that could fund the insurer's legitimate charges against policy value for cost of insurance, etc..

It also offers a cash value portion that accumulates cash that can be used by the policy holder to withdraw or borrow against.

It is more expensive than Term Life Insurance because of its cash value, which can even be borrowed against by the insured member.

You have access to your cash value in case of emergencies through loans or by borrowing against your policy.

In general, life insurance policies are purchased by you and maintained by you, and they usually build cash value that you can even borrow against at some point during your life.

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 poValue - 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 povalue component that you can borrow against or eventually cash in by surrendering the policy.

Perhaps you will be able to borrow more from a personal loan since the insurance loan amount will be decided by the cash value of your plan, but then your whole credit score will be put on the line, something that is not touched while taking a loan against your insurance policy.

While term life insurance doesn't accrue a cash value over time, meaning you can't borrow against it, a term policy has a low cost by comparison and is still customizable to an individual's situation.

Over time, after money has accumulated, you can withdraw or borrow against the cash value of the policy for emergencies (the available amount will vary by company) 1.

The cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, but it can also be borrowed against by the child once it's large enough.

By borrowing against the policy, you can use the accrued cash value of the policy to make the premiums or to help you get past other financial difficulties without losing the policy itself.