Sentences with phrase «cash value of a policy if»

Can an insurance company use the accumulated cash value of a policy if the policyholder is no longer able to pay the premium — without the policyholder's permission?

The policyholder receives dividends from the insurance company, and he or she can borrow against the cash value of the policy if the funds are needed.

Whole life, variable universal life, and universal life insurance policies use existing cash values of policies if payments are missed.

Not exact matches

And if you take a loan that is equal to the cash value of the policy, the insurance company will force the policy to lapse and you will be hit with a large tax bill.

You will also need the more costly cash value policy if you purchase life insurance for the purpose of leaving a charitable legacy, Simmonds said.

«If you have ample funds and are looking to get rid of a little every month, it would not be irrational to buy a whole - life, universal - life or variable - life policy, where the cash value grows income tax - free as long as the policy is held until death,» Hunt said.

A life insurance policy's cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, or surrender your coverage.

In addition if the loan, plus unpaid interest, exceeds the size of the cash value, your policy will lapse and you can lose your coverage.

¹ Access to cash values through borrowing or partial surrenders will reduce the policy's cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

If you work for a company that does not offer a qualified retirement plan (or does not offer a life insurance option in an existing plan) or if you have already contributed the maximum amount to your qualified retirement plan, a cash value insurance policy can offer some of the tax benefits of a qualified retirement plaIf you work for a company that does not offer a qualified retirement plan (or does not offer a life insurance option in an existing plan) or if you have already contributed the maximum amount to your qualified retirement plan, a cash value insurance policy can offer some of the tax benefits of a qualified retirement plaif you have already contributed the maximum amount to your qualified retirement plan, a cash value insurance policy can offer some of the tax benefits of a qualified retirement plan.

Since the growth of your policy's cash value is tax - deferred, variable life insurance might be a good consideration if you've maxed out your retirement account contributions, have a sizable portfolio of more liquid assets (such as in your brokerage and savings accounts), and are looking for an additional investment vehicle that also offers coverage to your dependents should anything happen to you.

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.

If you're considering permanent life insurance, but are wary of the complexity of the policy and not interested in the cash value or investment benefits, guaranteed universal life insurance is a less expensive way to purchase nearly - lifelong coverage.

However, given the complexity of the policy, the additional costs correlated with permanent life insurance policies, and the potential to lose the entirety of the account's cash value, it's not recommended if your primary intent is to provide financial coverage in the case of your death.

If a policy is cancelled, the insurance company no longer needs to keep the reserve to fund the policy in the later years, so it will refund to you the overpayment of premiums, called the cash surrender value.

When the insured individual gets older, say age 75, if the objective of protection is no longer an issue, the insured has the option to surrender his policy and tap into the cash value as a source of income.

Term - to - 100 is similar to whole life, except without any refund of the cash surrender value if you cancel your policy.

Use of the accelerated death benefit with permanent policies may increase countable assets if the amount advanced exceeds the cash surrender value.

The amount you receive depends on the type of policy, the policy's cash value and the end date of the insurance, if any.

Finally, if investors need funds, they may be able to withdraw or borrow from cash values of permanent policies.

A life insurance policy's cash value is essentially the amount of money you would receive if you decided to give up the policy to the insurer, or surrender your coverage.

If you have an old car, however, the current cash value your policy pays might not be worth the cost of the premiums and deductible for the coverage.

Plus, if the total outstanding loan reaches the size of your policy's cash value, the policy will lapse.

If, however you live longer than the period of coverage, you receive the policy's face value which, at that point, would equal its cash value.

A surrender charge is a hold back amount that an insurer charges against the cash values of a life insurance policy for the first 8 to 10 years, if funds are withdrawn early.

Include the death benefit and cash surrender value — if any — of each policy, as well as the names of the insurance companies and the beneficiaries.

On the other hand, if your company decides to sell the key person life insurance policy, you may have to pay taxes, depending on the size of the settlement, cash value of the policy, and the amount that's been paid in premiums.

If you decide to end the policy, you get some of the savings back (the cash surrender value).

In a similar fashion, if you have $ 50,000 of cash value in your policy, and you choose to get a $ 25,000 policy loan, the dividends paid to the policy will still grow on the total amount of $ 50,000.

Later on, if you do particularly well in your professional life, you can convert the policy to take advantage of the cash value benefits.

If they are destroyed in a fire, your homeowners insurance policy might only provide cash value, meaning that you would only be reimbursed what those items are worth today, not what it would actually cost you to buy new versions of them.

The benefit of combining the two insurances into one policy is you get life insurance death benefit coverage, help with your long - term care services, cash value growth that can be accessed via policy loans, with full cash surrender value plus return of premium if necessary.

If you're ever to get into financial trouble, universal life affords you the option to stop paying your premiums and use the cash value of your policy to cover that cost.

If you happen to borrow money from the cash value of your life insurance policy, you can often do so without penalty.

You can take out a loan on a life insurance policy's cash surrender value if you're in need of immediate funds.

In the case of a juicer, you can ask to add a replacement cost value rider to an actual cash value policy to get reimbursed for the cost of a new juicer if it's damaged.

If you are considering permanent life insurance — such as whole life, universal life, or variable life insurance — you probably know that these types of policies provide both death benefits and cash value accumulation.

If you have an actual cash value policy, your insurer covers the actual cash value of your stuff, but — and it's a big but — that's the actual cash value of the item today, not how much you threw down for it originally.

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.

With collision, you would only have to pay your deductible and, subject to your policy limits, we would pay the cost of repairs or actual cash value of the car if it's a total loss.

But if you consistently pay the minimum premium, the down years will definitely be a big kick in the pants and you'll be disappointed at the cash value of the policy.

But if you pay the minimum, and the policy struggles because there are a few bad years in the beginning, you may find yourself down the road with too little cash value to compensate for the increasing cost of insurance associated with your age.

The cash value is the amount of money you would receive if you were to give up your coverage, but can also be used to borrow money from the insurer in a policy loan.

This type of policy is good to consider if you're interested in not only the benefits of life insurance coverage, but also using the cash value as an investment vehicle to diversify your portfolio.

Even if cash is withdrawn from the policy cash value (verses taking it as a policy loan), this cash withdrawal is NOT considered income, or gain, until the amount exceeds the amount of premiums that have been paid into the policy.

A policy's cash value is essentially the amount of money you would receive if you surrendered the policy to the insurer, and this amount can be borrowed against or used to pay premiums.

If the mutual fund to which the cash value is invested returns a rate that exceeds 20 %, the full amount is credited to the policy holder's account (minus fees of course).

If you you lose your cash value, or you lose a substantial amount of your cash value, the policy will be in jeopardy.

You can also terminate the policy (or «surrender» it) if you want to, and get part of the accumulated funds, or you can sometimes borrow money against your policy's cash value.

The representative can give you the value of the policy if you cash it out.