Sentences with phrase «cash value component»

This type of policy provides a death benefit and cash value component where the funds can grow tax - deferred.

As with all other whole life products, there is a separate cash value component which grows tax deferred and can be accessed via loan.

Like whole life insurance, universal life insurance's cash value component grows over time and you can borrow against it tax - free, while you're still alive.

It doesn't expire, and it has an investment - style cash value component.

Term insurance is cheaper but expires after a certain number of years; whole is more expensive but doesn't lapse and includes an interest - gaining cash value component.

Since there's little cash value component to it, guaranteed universal life insurance is typically the best option if you're interested in permanent coverage without an investment component.

Term life insurance is the best option for most people — it's cheaper than the alternative, permanent life insurance, and doesn't feature a complicated cash value component.

With a permanent policy, the life insurance policy owner will typically have both life insurance coverage, as well as a way to save or invest within an underlying cash value component.

A whole life policy's cash value component increases each year with your premium payment and is an asset you can borrow against.

This means that as the cash in the policy's cash value component grows, there will be no tax due on the gain, unless or until the money is withdrawn.

It doesn't expire, and it has an investment - style cash value component.

Term insurance is cheaper but expires after a certain number of years; whole is more expensive but doesn't lapse and includes an interest - gaining cash value component.

Since there's little cash value component to it, guaranteed universal life insurance is typically the best option if you're interested in permanent coverage without an investment component.

Some financial planners advocate permanent life insurance policies with cash value components because the policies force you to save money.

However, if there is an unpaid balance in the policy's cash value component at the time of the insured's death, then this amount will be subtracted from the amount of the death benefit that is paid out to the beneficiary at that time.

In addition to the death benefit, whole life also offers the added cash value component whereby funds can grow and compound on a tax - deferred basis.

The EssentialLife Universal Life policy offers just that, with all the typical cash value components, level death benefit, and guarantees of most other universal products on the market.

Other life insurance types get complicated — and expensive — with things like interest - accruing cash value components, but term life insurance is simple.

If, however, there is an unpaid balance in the policy's cash value component at the time of the insured's death, it is important to note that the amount of the death benefit that is paid out to the policy's beneficiary will be subtracted by this amount.

Over the years, the policy's cash value component grows, and the policy begins to accumulate what is referred to as a cash surrender value.

It's easiest to explain whole life policy as two different parts: A term life - style death benefit paired with a savings account - style cash value component that provides a guaranteed, but minimal, growth rate.

Since there's little cash value component to it, guaranteed universal life insurance is typically the best option if you're interested in permanent coverage without an investment component.

If you are older and want a permanent life insurance policy, perhaps to cover estate taxes or leave an inheritance, guaranteed universal life insurance provides lifelong coverage with little to no cash value component.

The primary differences between the two policies are the cost, the duration of coverage, and that whole life insurance includes a cash value component.

Permanent life insurance policies, such as whole and universal life insurance, offer lifelong coverage and typically have a cash value component.

In addition, term policies don't have a cash value component.

The majority of permanent life insurance policies also have a cash value component, which is similar to an investment account.

Permanent life insurance policies with a cash value component typically only make sense if you need lifelong coverage and have a large investment portfolio that you want to diversify.

Guaranteed universal life insurance is the cheapest way for seniors to get permanent life insurance coverage, as policies typically have little to no cash value component.

These policies all generally have a cash value component, which is essentially the surrender value of the policy (if you give it up before its maturity or your death), and is the primary reason permanent life insurance policies are more expensive than term policies.

Whole life insurance tends to have a guaranteed rate of growth for the cash value component of the policy and often pays annual dividends.

There's generally no cash value component as you'd find with permanent policies, meaning it's less expensive, but this policy offers what is essentially lifetime coverage with level premiums.

Permanent life insurance policies, such as whole and universal life insurance, offer lifelong coverage and typically have a cash value component.

Permanent life insurance policies with a cash value component typically only make sense if you need lifelong coverage and have a large investment portfolio that you want to diversify.

If you are older and want a permanent life insurance policy, perhaps to cover estate taxes or leave an inheritance, guaranteed universal life insurance provides lifelong coverage with little to no cash value component.

In addition, term policies don't have a cash value component.

Term life insurance policies are cheaper that permanent policies in large part because they don't have a cash value component, so you're not able to borrow against them.

The majority of permanent life insurance policies also have a cash value component, which is similar to an investment account.

Term insurance is basic, generally inexpensive coverage with premiums that increase over time and no cash value component.

In this sense it is «pure» insurance without any cash value component.

The primary differences between the two policies are the cost, the duration of coverage, and that whole life insurance includes a cash value component.

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.

These policies have a cash value component, but even that doesn't help retention.

These policies have a cash value component that grows over time and in some cases can be a better investment.

In addition, whole life insurance is designed to offer tax benefits and have a cash value component which grows over time.

People often think of permanent life insurance, which carries a cash value component, as an investment vehicle — but a lot of that you put it into that is supposed to be for the «investment» side of it is spent on fees.

Its whole life insurance policies have a cash value component that grows at a guaranteed rate over time.

Given the high costs, these policies generally require that you take advantage of the cash value component of the account, or use the policy as a part of an estate plan, in order for the investment to make sense.

All these policies are significantly more expensive, easily 10 times the cost of term insurance, because they offer lifetime coverage and have a cash value component.

Because he feels there are better places to invest your money than with an insurance company, he recommends buying term life insurance which, because it has no cash value component, is cheaper than whole life, and investing the difference in mutual funds.