Sentences with phrase «cash value portion»

Did you know that if you have no need for the accumulated cash value portion, you can use these funds to increase your death benefit?

The Covenant, the companies» flagship whole life product, is a true whole life policy with guaranteed level premiums, guaranteed minimum death benefits, and a separate cash value portion.

The combination of the general cash value portion with the non-guaranteed cash value build up can enhance the value of the policy over time.

You might be wondering if and when you have to pay income tax on the cash value portion of your policy.

The cash value portion of the policy is the engine that makes the policy work.

The cash value portion is directly linked to the performance of the stock market.

They may also be able to allocate how much of their premium will go towards the policy's death benefit, and how much will go towards the cash value portion.

A great benefit of paying over a limited time is that you invest a greater amount in the cash value portion of the policy early on, meaning you earn higher returns over the length of coverage.

Depending on the type of permanent policy, you could see your death benefit shrink and / or premiums rise over time, or the cash value portion could decrease.

Because the cash value portion is invested, there is a risk that you can end up losing cash value over the life of the policy.

Like variable life, you can invest the cash value portion of the policy among the insurance company's portfolio of investments.

You can invest the cash value portion of the policy among the insurance company's portfolio of investments.

If you're canceling the policy to access the cash value portion then there are other approaches you should review before you decide how to proceed.

Some insurers will stipulate that you don't get any cash value portion returned if you surrender during this period, while other insurers will apply steep surrender penalties in order to recoup their own front loaded expenses in selling and setting up the policy.

Or are you trying to access the cash value portion of your whole life policy?

The cash value portion, along with fees, raises the price of permanent policies compared to term.

And, the cash that is in the cash value portion of the policy may be either borrowed or withdrawn by the policyholder for any need or reason.

Because a whole life insurance plan also offers a cash value portion, the premiums for this type of coverage are typically higher than the premiums on a term life insurance policy that has a comparable amount of death benefit.

The money that is inside the cash value portion of the policy is allowed to grow and compound on a tax - deferred basis, meaning that there is no tax on the gain until the time the funds are withdrawn.

It offers a guaranteed rate of return for the cash value portion of the policy as well as a level premium that will not change.

Whole life is the simplest and least risky version because its cash value portion is a simple savings account, whereas the other three all incorporate an investment product with variable returns.

Premiums are often much higher than a term life insurance policy with the same amount of coverage because you're paying for an insurance policy as well as putting money into the cash value portion of the policy.

These all differ in how the cash value portion of the policy works.

In addition, the policy also offers the ability to increase the cash value portion, yet with downside protection.

The cash value portion of the policy is allowed to grow and compound over time on a tax deferred basis.

Investment Uncertainty: As with any kind of investment, it is difficult to ascertain the growth of the cash value portion.

When you pay your premiums, the money that is in the cash value portion of the permanent policy grows tax deferred.

These types of policies can be a good life insurance solution for those whose children are now growth, as well as for business owners, and for those who wish to use the cash value portion of the policy to increase their overall retirement nest egg.

In addition, the cash that is in the policy's cash value portion is allowed to grow and compound on a tax - deferred basis.

You might be wondering if and when you have to pay income tax on the cash value portion of your policy.

The cash value portion also allows you to earn a minimum guaranteed rate of interest along with receiving a higher rate of interest in certain scenarios, the most common of which, when the S&P 500 goes up, in the example of an equity indexed UL.

With whole life, there is both a death benefit and a cash value portion.

If the cash value portion in your account underperforms or you have not funded your life insurance policy adequately, you may have to pay a higher premium later to keep your insurance coverage in force.

Within the cash value portion of the policy, funds are allowed to grow on a tax deferred basis — meaning that no taxes are due on the growth of these funds until they are withdrawn.

The funds that are within this cash value portion of the policy are allowed to grow and compound on a tax - deferred basis, meaning that no tax will be due on the gain of the funds unless or until they are withdrawn.

While it's more expensive, you'll have the same security term life insurance offers along with the benefits of a cash value portion.

Without a cash value portion, this insurance is affordable for almost any income bracket.

Your control over your policy extends to the premium, death benefit, and cash value portion.

Unlike permanent life insurance, there is no cash value portion.

Because the cash value portion is invested, there is a risk that you can end up losing cash value over the life of the policy.

Depending on the type of permanent policy, you could see your death benefit shrink and / or premiums rise over time, or the cash value portion could decrease.

Premiums are often much higher than a term life insurance policy with the same amount of coverage because you're paying for an insurance policy as well as putting money into the cash value portion of the policy.

These all differ in how the cash value portion of the policy works.

You can invest the cash value portion of the policy among the insurance company's portfolio of investments.

Whole life is the simplest and least risky version because its cash value portion is a simple savings account, whereas the other three all incorporate an investment product with variable returns.

All permanent life insurance policies are split into two parts: the death benefit (which pays out a sum if you die), and cash value portion that can gain value over time.

The cash value portion, along with fees, raises the price of permanent policies compared to term.

If you're canceling the policy to access the cash value portion then there are other approaches you should review before you decide how to proceed.

The money in the cash value portion of your whole life insurance policy is tax - deferred, meaning you don't pay taxes on it until you withdraw it, but many other investment vehicles (like 401 (k) s and traditional IRAs) also offer this option.