Sentences with phrase «cash value of variable»

The cash value of a variable policy is not guaranteed and the policyholder bears that risk.

Additionally, investment risks within the cash value of a variable life insurance policy fall completely on the policyholder, not the insurance company.

The cash value of variable life insurance policies can grow at a much faster rate and in certain cases can be used to pay premiums.

The cash value of Variable Universal Life Insurance can be used as a tax - advantaged income source for retirement and estate planning as well as for children's education.

The cash value of variable insurance isn't guaranteed if your investments underperform, and the cash value of a universal life policy is protected from risk but can be depleted if it's accessed to pay the policy premiums (explained below); neither offers dividends.

By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.

Taxes and Variable Life As in permanent life policies, the cash value of a variable life insurance policy grows on a tax deferred basis.

The cash value of variable insurance isn't guaranteed if your investments underperform, and the cash value of a universal life policy is protected from risk but can be depleted if it's accessed to pay the policy premiums (explained below); neither offers dividends.

The cash value of a variable universal life insurance policy is not guaranteed.

By contrast, the cash value in universal life insurance is linked to an interest rate determined by the insurer, and the cash value of variable life and variable universal life is linked the performance of the underlying investment options you choose to invest in and fluctuate with market conditions.

A. Just like other types of permanent life insurance policies, you can take a loan from the cash value of a variable life insurance policy.

The cash value of variable life insurance policies can grow at a much faster rate and in certain cases can be used to pay premiums.

Not exact matches

«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.

Types of cash - value policies include whole life, universal life and variable life.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

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.

Variable life insurance is also similar to whole life insurance but, instead of having a guaranteed rate of growth, the cash value of the policy can be invested in sub-accounts offered by the insurer.

Mr Newnham said while he expected the property values to rise he wanted the fund to be recognised more for its strong cash profits rather than the variable statutory profit that includes the increase or decrease in the value of properties.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

Financial Planning Misunderstanding Variable Universal Life Can Lead to Adverse Consequences Bad market conditions can cause the cash value of these policies to be much lower than forecast.

Policies such as variable universal life insurance combine components of the above, blending the investment flexibility of variable life with the ability to use the cash value to pay monthly premiums offered in universal life.

Variable interest rate on the cash value that you contribute over the course of your life.

Certain types of life insurance policies, including variable life, cash value life insurance and whole life insurance, combine life insurance with a tax - deferred investment account, and provide tax - free access to the cash value of the policy.

The lack of cash value is Tom's problem (above) and variable universal life is such a flawed concept that it should almost always be avoided.

Whole life, universal life, and variable life insurance are the three primary types of cash value life insurance.

Filed Under: Banking Advice Tagged With: angry retail banker, Bureau of Labor and Statistics, captive agent, cash value, death benefit, insurance agent, insurance broker, life insurance, policy, PolicyGenius, premium, quote, retail banker, retail banking, term life insurance, universal life insurance, variable life insurance, variable universal life insurance, whole life insurance

On the opposite end are variable annuities which carry more risk of investment loss AND also may offer the opportunity for higher returns and cash value growth.

Pacific Life has a large array of cash value permanent coverage including universal life, indexed universal life and variable universal life.

Variable annuities were introduced in the 1950's as an alternative to fixed index annuities which offer a guaranteed contractual rate of interest in terms of the cash value growth of the account, similar to dividend paying whole life insurance.

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.

With Variable Universal Life policies your cash value can drop dramatically in a very short period of time.

There are various types of permanent life insurance that all offer tax deferred cash value accumulation, which are indexed universal life insurance, variable life insurance, private placement life insurance, and participating whole life insurance.

Variable Universal Life (VUL) is defined as a type of permanent insurance policy, in which the cash value can be invested into different accounts consisting, for example, of stocks, bonds and mutual funds.

John Hancock Life Insurance Company offers some of the best cash value life insurance, including universal, indexed universal life and variable universal life insurance coverage.

And rather than having to move certain segments from an indexed fund to the fixed account, variable net cost loans are available which allow crediting from index strategies to be applied to the portion of the cash value being used as collateral.

Variable Universal Life offers the benefits of Universal Life with an additional opportunity to grow your cash value through the allocation of premiums to professionally managed sub accounts or a fixed account.

Variable life insurance is also similar to whole life insurance but, instead of having a guaranteed rate of growth, the cash value of the policy can be invested in sub-accounts offered by the insurer.

The cash value aspect of whole life insurance is similar to other types of permanent life insurance like universal life insurance and variable life insurance, which all feature cash savings.

Variable universal life insurance is going to give you the least amount of flexibility in how much you can change your premiums, but it will also give you the highest cap on how much growth you can get from the cash value.

Cash value life insurance may be one of several types, such as whole life, universal life or variable life.

With a variable life insurance policy, you can make a series of withdrawals from the policy's cash value, make a single large withdrawal or simply use the cash value as collateral in a policy loan.

Therefore, with the same cash value rate of return, you would actually perform worse with a variable life insurance policy.

Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay pVariable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay pvariable life insurance, but you can use the cash value to pay premiums.

Since you're able to choose from a variety of investment options, variable life insurance policies have higher upside potential than other cash value policies, such as whole life insurance.

Depending on how you want to invest the cash value, you can choose between traditional universal life insurance (rates determined by insurer), indexed universal life insurance (tracks an index), and variable universal life insurance (you pick from a set of mutual funds).

Whole life, variable life, and universal life insurance are examples of cash value life insurance.

Variable life insurance policies have higher upside potential than other permanent life insurance policies as you can choose how the cash value is invested from a variety of options.

Variable Life Insurance (VUL) provides the flexibility of Universal Life, but also the potential to increase your cash value by allocating your money into various sub-accounts that invest directly in the underlying asset class, similar to mutual funds.

However, we have not included Variable Universal Life (VUL) because it does not serve one of our primary goals in this article, which is cash value growth without risk of loss.

CFA's Rate of Return (ROR) service estimates «true» investment returns on any cash value life insurance policy — whole life, universal life (fixed or indexed) or variable universal life (cash values in mutual - fund - like accounts).