Sentences with phrase «cash value in them»

The cash value in a permanent policy is allowed to grow on a tax - deferred basis.

Variable universal life insurance invests the cash value in mutual funds instead of a fixed or indexed account.

When your child turns age 21, your child will have two options: Keep the policy and have coverage for life, or turn in the policy and get the available cash value in return.

If that occurs, the insured will then be covered for the remainder of his or her lifetime (provided that the premium continues to be paid), and they will be able to build up cash value in a tax - deferred manner.

The primary difference is that you invest the cash value in grouped investments that are similar to mutual funds.

As the cash value in a policy builds, you can borrow against the accumulated funds.

As with other types of permanent life insurance policies, the cash value in this plan is allowed to grow tax - deferred, and the money may be borrowed or withdrawn for any reason.

The cash value in a Whole Life policy is not YOUR MONEY.

For more on cash value and an example of a policy illustration, read about cash value in life insurance: What's it worth to you?.

When it comes to the cash value in a life insurance policy, a loan — one that possesses either a standard or a variable interest rate — will not reduce the value of your cash account.

These are life insurance policies that invest the cash value in index funds such as the s & P 500.

Overtime you will accrue cash value in your policy that should make your policy more efficient.

Potentially faster rate of accumulation of cash value in your policy compare to other types of policy; and 2.

It is possible to build up cash value in a final expense policy.

With that in mind, the cash value in a permanent type of policy — which is allowed to grow and compound tax - deferred — may be earmarked for supplementing retirement income in the future, and / or for ensuring that a child or grandchild's college education is paid for.

The cash value in a fully funded policy will grow quickly and can provide income to the purchaser if needed.

The benefit of having life insurance as a liquid asset is that the cash value in the account are generally not taxed.

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

The interesting aspect of these policies is that you can surrender your policy and get the accrued cash value in your hands provided you have a substantial amount of cash value.

Loan / Lease Coverage: This optional coverage pays you up to 25 % of your car's actual cash value in the event of a total loss.

If you choose to build up your cash value in an IUL and use the protection during your working years, the policy will act much like any other tax - deferred product.

Whole Life policies, and one of two options of universal life policies — Option B — pay the cash value in addition to the face value upon death.

You don't build cash value in term life.

This type of life insurance can be expensive because huge commissions (thousands of dollars the first year) and fees limit the cash value in the early years.

The cash value in your policy accumulates on a tax deferred basis.

Under these circumstances, the insurer may offer a guarantee of death benefit coverage regardless of the cash value in the policy provided that you pay a set minimum premium payment.

However, the cash value in a variable universal life plan will be tied to the performance of underlying market «subaccounts.»

With IULs, a part of your premium will go towards accumulating cash value in an indexed account whose rate of growth is generally linked to the market index of your choice.

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.

The cash value in a whole life plan has a guaranteed rate of interest — so it grows each and every year, regardless of what is occurring in the stock market, or even in the economy overall.

Similarly, the cash value in your current policy may also be enough to pay the premiums for a number of years into the future, but that, too, will erode the death benefit over time, as the loans to pay premiums accumulate with interest (if you were not paying some or all of those amounts back to the insurance company).

Alternatively, internal policy costs may deplete the cash value rapidly in a universal life policy, leaving little or no cash value in the policy.

An example of how borrowing from your life insurance policy could be a problem, especially if you are borrowing money because you are having hard financial times, is that your cash value in your life policy is protected from creditors, but a loan from your life insurance policy is considered cash, and so this is no longer protected from creditors.

Also, you can take loans out from the cash value in the policy.

The actual cash value in a homeowners insurance policy is based on the market value or the initial cost of your home and personal property with depreciation considered.

Another option with the Elite Index II product is choice loans, which provides that if you take out a life insurance loan, your cash value in an indexed account will continue to participate in the index.

The return on the cash value in an indexed universal life insurance policy is based on the performance of an underlying market index such as the S&P 500.

Instead of cashing in the policy, you can use the accumulated cash value in permanent life insurance to handle your premium payments.

Whole life insurance policies (a type of permanent insurance) build cash value in addition to providing a death benefit.

A 1035 tax - free exchange can help protect the accumulated cash value in an existing life insurance policy that might otherwise need to be spent down before benefits are available.

Individuals will oftentimes transfer the cash value in a paid - up policy to an irrevocable trust to avoid Medicaid spend down requirements.

You can quickly use up the cash value in the account.

You can't borrow against the cash value in the policy because you're no longer the policy's owner.

You need to be very careful with regards to managing the cash value in the account and paying off interest as needed.

If they lived past their policy's maturity date, policyholders lost their coverage and received little cash value in return, since the funds had been used to pay premiums.

If you have permanent life insurance, more of your insurance premium goes to cash value in the early years of your policy: a step - by - step guide.

Greater flexibility for policyholders who want to borrow against the cash value in their whole life insurance policies.

Also, it's important to note the fluctuating rate of return on cash value in this particular whole life insurance policy.

As these figures show, the cash value in a Gerber Grow - Up Plan takes decades to become sizable, and even after it doubles in size, the death benefit is much smaller than an adult would typically need.

While these policies have the potential for greater cash value accumulation, cash value in the investment divisions will fluctuate with market conditions and it may be at risk.