Sentences with phrase «cash value of the insurance policy»

Although the payment of the insurance premiums is not tax deductible, any increase in the cash value of the insurance policy due to investment gains is not taxed until you begin to withdraw the money after you retire.

The major difference between traditional universal life and indexed universal life is the way the interest is calculated and credited to the cash value of your insurance policy.

The major difference between traditional universal life and indexed universal life is the way the interest is calculated and credited to the cash value of your insurance policy.

Therefore, if the cash value of the insurance policy rises to $ 60,000 by its 30th year in force, the net amount at risk is then $ 40,000.

Insurers calculate their rates with the assumption that a certain portion of policy holders will seek to redeem the cash value of their insurance policies before death.

Because these withdraws diminish the cash value of the insurance policy, beneficiaries can expect to see smaller payouts and lower tax advantaged transfers at the time of your death.

If the insured party does survive for three years, the cash value of the insurance policy has grown with interest and can have a gift tax that is a collectible amount by the government.

Insurers do often require the cash value of an insurance policy to reach a certain level before you can borrow against it, commonly this will take around 10 - 15 years.

The cash value of an insurance policy can grow into a small «nest egg» for the future, as well as a potential source of ready cash should you need to borrow against the policy.

When the cash value of an insurance policy is being built up, there is no tax imposed on this amount.

After all, technically a life insurance policy loan is really nothing more than a personal loan from the life insurance company, for which the cash value of the insurance policy is collateral for the loan.

You can borrow from this cash value of your insurance policy tax - free while you're still alive and once you have died, your beneficiary will receive the death benefit minus the amount you borrowed (if you didn't pay it back while you were alive).

Further, since one can tap into the cash value of the insurance policy to cover the first few retirement years, the retirement investment funds can be allowed to grow for a longer period.

Further, since one can tap into the cash value of their insurance policy to cover the first few retirement years, the retirement investment funds can be allowed to grow for a longer period.

If you take out a loan against the cash value of your insurance policy, the amount of the loan is not taxable, unless the policy is a modified endowment contract.

In some states, such as Florida, a person declaring bankruptcy can only protect the cash value of an insurance policy on the individual's own life.

The cash value of an insurance policy is the portion of the life insurance that the policyholder can use in many ways, like investing it to yield interests in the future or using it as a premium payment.

The way the cash value of an insurance policy is treated varies, depending on the state where the person declaring bankruptcy lives.

In layman's terms, the cash value of the insurance policy dies together with the insured.

The cash value of an insurance policy builds over time, so there might not be sufficient cash value available to borrow against if you want to take out a loan in the first years of the plan.

The cash value accumulation test is used to make sure that the cash value of the insurance policy does not exceed the present value of all future premium payments on the policy.

That is you can take out a loan against the built up cash value of your insurance policy.